Herder-Farmer Tensions in Rural Kenya Ease, But Problems Remain

Violence surged in rural central Kenya earlier this year as armed northern herders brought thousands of cattle, sheep and goats onto private property, prompting clashes that took the lives of humans and wildlife.

 

As drought raged on, it did not help that some politicians encouraged constituents to graze their livestock wherever they could find grass and water.

 

Peter Hetz, executive director of the Laikipia Wildlife Forum, says that although the recent elections and change in government were peaceful, there are still unresolved issues.

 

“People are feeling optimistic and empowered by the power of the vote and the ability to vote out some of the people who were implied in the early politicization of this county and the maneuverings of armed people, and livestock. And I think people are generally feeling good,” said Hetz. “The fact remains that there are still people who have guns and there are still livestock that don’t belong here, roaming the territory and the government must still resolve to do something about that.”

According to Kenya’s Ministry of Interior spokesman, Mwenda Njoka, security operations in the central parts of the country are still ongoing.

“I could give assurance to both the locals and the foreigners who are in that area that at least security has returned to normal, has significantly normalized,” said Njoka.

 

Josh Perrett, manager of Laikipia’s Mugie Ranch, agrees that things have improved since earlier this year: the grass has returned, the wildlife look better, and poaching has dropped “significantly.”

Illegal grazing remains

But Perrett says the illegal grazing continues, citing several occasions since the end of July when his team has caught herds of roughly 400 cattle at a time on the property.

“Every day we have issues with cows coming in from somewhere. It’s just not to the scale or to the aggression that it was in January,” said Perrett.

The relative gains experienced in central Kenya have not reached the northern semi-arid rangelands, home of many of the pastoralists, according to Frank Pope, CEO of Save the Elephants.

He says that after many decades of sustained overgrazing and rising human populations, the top soil has now disappeared from many of the areas. And as a result, there is nowhere for the large numbers of goats and cattle to graze.

“And everyone is chasing the last grass. There’s been no good rain in the north. There have been some patches of rain, but really, there’s no let up for the situation in the north. And we’ll wait to see what the new government decides to do and whether they decide they can grasp this nettle of how to control grazing amongst the pastoralists. But if they don’t, I think the north will continue its march towards full desert conditions,” said Pope.

 

Experts have encouraged the government to implement long-term rangeland management practices in the north, and to explore options of tagging livestock, in order to keep track of who owns which animals.

 

McDonald’s to Close 169 Outlets in India in Franchise Battle

McDonald’s India has announced it will close 169 McDonald’s outlets in northern and eastern India after the American fast food giant decided to terminate a franchise agreement with its Indian partner.

McDonald’s said its partner Connaught Plaza Restaurants violated the terms of the franchise agreement, including reneging on payment of royalties.

 

Connaught Plaza Restaurants, which runs 169 McDonald’s outlets in northern and eastern India, said Tuesday it is considering legal action in the long-drawn legal battle. In June, it shut 43 McDonald’s outlets in the capital, New Delhi, after it failed to renew their licenses.

 

McDonald’s said its Indian partner would have to “cease using the McDonald’s name, trademarks, designs, branding, operational and marketing practice and policies” within 15 days of the termination notice.

 

The decision to close nearly a third of the 430 McDonald’s outlets in India creates a challenge for the company, disrupting operations in the world’s second most populous country.

 

Vikram Bakshi, the managing director of Connaught Plaza Restaurants, described the McDonald’s decision as “mindless and ill-advised.”

 

“Appropriate legal remedies that are available under law are being explored,” Bakshi said in a statement.

 

McDonald’s said it is looking for a new partner to work with in north India. McDonald’s franchises in southern and western India are run by a separate company.

 

 

Hyundai Will Launch Pickup, More SUVs to Reverse US Sales Slide

Hyundai Motor plans to launch a pickup truck in the United States as part of a broader plan to catch up with a shift away from sedans in one of the Korean automaker’s most important markets, a senior company executive told Reuters.

Michael J. O’Brien, vice president of corporate and product planning at Hyundai’s U.S. unit, told Reuters that Hyundai’s top management has given the green light for development of a pickup truck similar to a show vehicle called the Santa Cruz that U.S. Hyundai executives unveiled in 2015.

Hyundai currently does not offer a pickup truck in the United States.

O’Brien said Hyundai plans to launch a small SUV called the Kona in the United States later this year.

People familiar with the automaker’s plans said separately that Hyundai plans to launch three other new or refreshed SUVs by 2020.

So-called crossovers — sport utilities built on chassis similar to sedans — now account for about 30 percent of total light vehicle sales in the United States. Consumers in China, the world’s largest auto market, are also substituting car-based SUVs for sedans.

People familiar with Hyundai’s plans said the company plans to roll out a new version of its Santa Fe Sport mid-sized SUV next year, followed by an all-new 7-passegner crossover which will replace a current three-row Santa Fe in early 2019 in the United Sates. A redesigned Tucson SUV is expected in 2020, people familiar with Hyundai’s plans said.

Hyundai’s U.S. dealers have pushed the company to invest more aggressively in SUVs and trucks as demand for sedans such as the midsize Sonata and the smaller Elantra has waned.

“We are optimistic about the future,” Scott Fink, chief executive of Hyundai of New Port Richey, Florida, which is Hyundai’s biggest U.S. dealer, said. “But we are disappointed that we don’t have the products today.”

Hyundai’s U.S. sales are down nearly 11 percent this year through July 31, worse than the overall 2.9-percent decline in U.S. car and light truck sales. Sales of the Sonata, once a pillar of Hyundai’s U.S. franchise, have fallen 30 percent through the first seven months of 2017. In contrast, sales of Hyundai’s current SUV lineup are up 11 percent for the first seven months of this year.

“Our glasses are fairly clean,” O’Brien said. “We understand where we have a shortfall.”

 

McConnell: ‘America is Not Going to Default’

Senate Majority Leader Mitch McConnell says there is “zero chance” Congress will allow the country to default on its debts by voting to not increase the borrowing limit.

 

McConnell’s comments came Monday during a joint appearance in his home state of Kentucky with U.S. Treasury Secretary Steven Mnuchin. It was one of McConnell’s first public appearances since President Donald Trump publicly criticized him for failing to pass a repeal and replacement of former President Barack Obama’s health care law.

 

McConnell did not mention Trump in his remarks, and he did not take questions from reporters after the event. But in response to a question about where he gets his news, McConnell said he reads a variety of sources, including The New York Times.

 

“My view is most news is not fake,” McConnell said, which appeared to be a subtle rebuke of one of Trump’s favorite phrases. “I try not to fall in love with any particular source.”

 

The government has enough money to pay its bills until Sept. 29. After that, Congress would have to give permission for the government to borrow more money to meet its obligations, including Social Security and interest payments.

McConnell sought to calm a crowd of nervous business leaders by interjecting at the end of Mnuchin’s answer to a question about what would happen if lawmakers did not increase the borrowing limit.

 

“Let me just add, there is zero chance, no chance, we won’t raise the debt ceiling,” McConnell said. “America is not going to default.”

 

Addressing the country’s borrowing limit will be the most pressing issue when lawmakers return to Washington following their August recess. After that, Republicans will likely turn their attention to overhauling the nation’s tax code.

 

McConnell said Congress is unlikely to repeal a pair of Obama-era laws most hated by conservatives. While negotiations about health care are ongoing, McConnell said the path forward is “somewhat murky.” And he said it would be “challenging” to lift the restrictions placed on banks following the 2008 financial crisis, known as “Dodd-Frank.”

 

On tax reform, McConnell said the only thing lawmakers won’t consider eliminating are deductions on mortgage interest and charitable deductions.

Democrat ‘Incredibly Frustrated’ with Leader Over Foxconn

Wisconsin Assembly Democratic Leader Peter Barca was branded as failing “on all accounts” by a fellow Democrat who was “incredibly frustrated and concerned” with his actions after Barca joined Republicans in voting for a $3 billion tax incentive package for Foxconn Technology Group.

 

Emails obtained by The Associated Press show that Democratic state Rep. Lisa Subeck of Madison spelled out her grievances to Barca on Friday, the day after the Assembly passed the incentive package backed by Republicans designed to attract Foxconn to build a massive display panel factory in the state.

Barca was one of three Democrats to vote for the measure Thursday, with 28 Democrats against. Barca, of Kenosha, and the other Democrats who voted for it represent southeast Wisconsin, near where Foxconn plans to build a factory that could employ thousands. Reps. Cory Mason of Racine and Tod Ohnstad of Kenosha joined Barca and 56 Republicans in voting for the bill; two Republicans joined all other Democrats in opposition.

 

Most Democrats were outspoken in their opposition to the measure, branding it as a corporate welfare giveaway that also puts Wisconsin’s environment in jeopardy because of requirements that would be waived to speed construction of the plant that could open as soon as 2020.

 

Barca tried to walk a line, criticizing the process of quickly acting on the bill and saying that more improvements could be made to protect taxpayers, Wisconsin businesses and the environment. But ultimately he said he supported the incentive package because of the backing it has from people in his district.

 

Subeck, in an email sent to all Assembly Democrats obtained by the AP, accused Barca of failing “on all accounts” to differentiate his views on Foxconn with that of the rest of Democrats who voted against the measure. She was particularly upset with Barca for holding an impromptu news conference in the Assembly parlor, right around the corner from his office, shortly after the evening vote Thursday.

 

“I am also concerned that the message you conveyed,” Subeck wrote. “It seems you were trying to justify your own vote rather than share the caucus perspective consistent with our agreed upon message.”

 

She said that Barca’s public comments “have not been consistent with the majority position of the caucus and have served counter to our interest.”

 

Barca wrote in response that he hadn’t planned to have a news conference but after the Thursday vote “we had one outlet in particular that was very aggressive and several others that wanted to talk.” Barca said his staff asked the reporters to move to the nearby parlor, where he and Assistant Majority Leader Dianne Hesselbein of Middleton and Rep. Mark Spreitzer of Beloit answered questions.

 

Barca did not address her concerns about what he actually said.

 

Barca spokeswoman Olivia Hwang said in an email that it was known Democrats had different opinions on the Foxconn bill and he supports efforts to oppose legislation they believe is wrong for their district or the state.

 

Barca does not plan to testify at a public hearing Tuesday in Racine on the bill, she said. Subeck raised concerns in her email about Barca testifying at the hearing scheduled for near where the plant may locate.

Venezuela’s Maduro Warns of Action Against Price Gouging

Venezuelan President Nicolás Maduro says new measures will be rolled out this week to combat economic speculation in the crisis-ridden country.

 

In an interview distributed via state-run media Sunday, Maduro said he was working with a “special commission” of the new, pro-government Constituent Assembly to clamp down on price gouging.

 

The commission is “going to announce a set of actions so that the maximum price of the products is respected,” Maduro said, without providing details. He also warned that “very severe justice” would “shake the society.”

​Venezuelans constantly complain of scarcity of food, medicine and personal hygiene products — and of outrageous prices amid soaring inflation.

The currency has shriveled in value, down from eight bolivars to the dollar in 2010 to more than 8,000 bolivars last month, as CNN Money recently pointed out. A single-serve bottle of water can cost about 1,200 bolivars.

 

Maduro previously declared a war on speculation in 2013, according to the Washington Office on Latin America. 

Carlos Larrazabal, president of Fedecamaras, a union representing Venezuela’s business sector, accused the socialist administration of trying to smother private enterprise.

 

“The government has a political agenda. Instead of correcting problems of supply and production,” the Constituent Assembly has “deepened” Venezuela’s crisis, Larrazabal said in an interview Sunday with Caracas television station Televen.

The assembly declared on Friday that it would wrest legislative power from the opposition-led National Assembly, a move denounced by many in Venezuela and beyond. The United States does not recognize the Constituent Assembly as valid.

 

Larrazabal said Venezuela is suffering “the consequences of bad economic policy, with an exchange mechanism that is not transparent, which does not allow raw materials” into the country. He also complained of price controls.

 

The archbishop of Caracas, Jorge Urosa Savino, recently reiterated his call to the Maduro government to ease Venezuelans’ suffering. He said the Roman Catholic Church has repeatedly urged the opposition “to defend the rights of the Venezuelan people.”

This article originated with VOA’s Spanish service.

 

Lebanon Prepares for Syria’s Post-war Construction Windfall

The port of Tripoli in northern Lebanon wants the world to know it’s ready for business.

 

British safety managers are training local hires to operate heavy machinery and Chinese technicians are running diagnostics on two new container cranes that tower over the harbor, just 28 kilometers (18 miles) from the Syrian border.

 

After six years of civil war in Syria, markets across the Middle East are anticipating a mammoth reconstruction boom that could stimulate billions of dollars in economic activity. Lebanon, as Syria’s neighbor, is in prime position to capture a share of that windfall and revive its own sluggish economy.

 

Battles still rage in Syria’s north and east, and in pockets around the capital, Damascus, but the survival of President Bashar Assad’s government now appears beyond doubt.

 

That is introducing an element of stability into forecasts not seen since 2011, when the war broke out. The Damascus International Fair, a high-profile annual business event before the war, opened on Thursday evening for the first time since war broke out. The 10-day event kicked off with much fanfare, with participants from 43 countries and hundreds of attendees.

 

The World Bank estimates the cost to rebuild Syria at $200 billion.

 

For Lebanon, that could be just the stimulus it needs — the tiny Mediterranean country’s growth rate has hovered around 1.5 percent since 2013. And though the capital, Beirut, has grown visibly richer over the years, Tripoli and the impoverished north have lagged behind.

“Lebanon is in front of an opportunity that it needs to take very seriously,” said Raya al-Hassan, a former finance minister from northern Lebanon who now directs the Tripoli Special Economic Zone project that’s planned to be built adjacent to the port.

 

Ahmad Tamer, the port manager, estimates Syria’s reconstruction will create a demand for 30 million tons of cargo capacity annually.

 

Syria’s chief ports, Tartous and Latakia, also on the Mediterranean Sea, have a combined capacity of 10 to 15 million tons, he says. He wants Tripoli port to be ready to step in for a portion of the rest.

 

“We could provide up to 5 or 6 or 7 million tons,” he says.

 

The port is nearing the completion of the first phase of an expansion project first drawn up in 2009, then revised with an eye on Syria in 2016. Capital investment has reached around $400 million, according to the port manager.

 

On a map, Tamer pointed to a vacant quadrant where preparations are underway to build silos to hold grain destined for regional markets.

 

Syria’s conflict has decimated its food production, which included an average of 4.1 million tons of wheat annually before the war, according to the U.N.’s Food and Agriculture Organization.

 

In 2017, it managed to produce just 1.8 million tons.

 

Lebanon’s businessmen and politicians have always maintained close relations with Syrian counterparts. Syria is among Lebanon’s largest trade partners, and arguably its most reliable supplier of cheap labor. Lebanon, in exchange, is the banker to many of Syria’s enterprises and its wealthy elites.

 

These ties give Lebanon — and Tripoli in particular — an edge over competitors vying for the Syrian market.

 

The city’s location is also attracting foreign investment. Tripoli port signed a 25-year lease with the Emirati port operator Gulftainer in 2013, to manage and invest in the terminal.

 

“Our aim was to invest here in anticipation of Syria’s reconstruction,” said Ibrahim Hermes, the CEO of Lebanon’s subsidiary of Gulftainer.

 

Lebanon is now a fixture on itineraries of prospective investors. Hermes said he has seen delegations arriving from Europe, Asia and especially China, to scope out trade opportunities.

Before the war in Syria, goods coming through Lebanon’s ports used to transit as far afield as Iraq — saving ships from having to take the sea journey through the Suez Canal and around the Arabian Peninsula.

There is talk now that Tripoli could even be a terminal in China’s trillion-dollar new “Silk Road” project, carving a trade route from east Asia to Europe.

 

The Chinese firm Qingdao Haixi Heavy-Duty Machinery Co. sold the two 28-story container cranes now at the port. Safety signs inside the structures are posted in English and Mandarin.

 

“Tripoli can be a main transshipment hub for the eastern Mediterranean,” said Ira Hare, a sunburned British manager working for Gulftainer.

 

Lebanon has officially sought “dissociation” from the Syrian war so as not to fuel rancor among political parties split between those aligned with Damascus and those against it.

 

But there is also an air of inevitability about the re-normalization of relations, as Assad looks, for the short-term at least, to stay on in power.

 

Syria’s chief champion in Lebanon, the militant Hezbollah group, which is fighting alongside Assad’s forces, evinces little doubt.

 

“Our national interest is for the border between Lebanon and Syria to be open … because, tomorrow the routes will open to Iraq and to Jordan and we want to be able to transport Lebanese goods,” Hezbollah’s leader, Hassan Nasrallah, said in a speech this week.

 

A Hezbollah minister, Hussein Hajj Hussein, is one of two Cabinet ministers headed to Syria this week in a highly controversial visit, the first since the start of the war. Prime Minister Saad Hariri, an Assad critic, said the visit did not have government backing.

 

Damascus also knows it will be brought back in from the cold.

 

The Damascus International Fair, which promises to attract investors from Russia, China, Iran, and other places, is a telling indicator of the mood in the Syrian capital.

 

Europe and the United States are hesitant to finance the reconstruction projects so long as Assad, a pariah to the West, remains in power. But Russia, China, and Iran, as well as investors in Lebanon and the Middle East, are showing no signs of hesitation.

 

“As soon as there is a political agreement to end the war, we will be among the first countries to play a role in reconstruction,” said al-Hassan, the former finance minister.

Initial NAFTA Talks Conclude Amid Signs Schedule Could Slip

The United States, Canada and Mexico wrapped up their first round of talks on Sunday to revamp the NAFTA trade pact, vowing to keep up a blistering pace of negotiations that some involved in the process said may be too fast to bridge deep differences.

In a joint statement issued at the end of five days of negotiations in Washington, the top trade officials from the three countries said Mexico would host the next round of talks from Sept. 1 to 5.

The talks will move to Canada later in September, then return to the United States in October, with additional rounds planned for later this year, U.S. Trade Representative Robert Lighthizer, Mexican Economy Minister Ildefonso Guajardo and Canadian Foreign Minister Chrystia Freeland said.

“While a great deal of effort and negotiation will be required in the coming months, Canada, Mexico and the United States are committed to an accelerated and comprehensive negotiation process that will upgrade our agreement,” the officials said.

One person directly involved in the talks described the schedule as exceedingly fast, given that past trade deals took years to negotiate.

The three countries are trying to complete a full modernization of the 23-year-old North American Free Trade Agreement by early 2018, before Mexico’s national election campaign starts.

U.S. President Donald Trump has threatened to scrap NAFTA without major changes to reduce U.S. goods trade deficits with its North American neighbors, describing it as a disaster that cost Americans hundreds of thousands of manufacturing jobs.

The joint statement said the three countries made “detailed conceptual presentations” across the scope of NAFTA issues and began work to negotiate some of the agreement’s texts, although it did not provide details on the topics.

Negotiating teams “agreed to provide additional text, comments or alternate proposals during the next two weeks,” ahead of the Mexico round.

Not All Cards on the Table

The source involved in the talks, who was not authorized to speak publicly, said there had been no drama as the three countries exchanged proposals.

Not all cards were put on the table, the source added, saying that during four four-hour sessions on rules of origin, the United States did not reveal its proposed targets for boosting North American and U.S. content for the automotive sector.

Lighthizer had made clear that strengthening rules of origin was one of his top priorities.

“The instructions that the groups received are clear: Work and work fast,” said a second person participating in the talks.

“This is not a negotiation like others we’ve been in. “We will not sacrifice the substance of a negotiation to meet a schedule,” added the source, who was not authorized to speak publicly about the talks. Trade experts have consistently said that the schedule is

far too ambitious, given the amount of work and differences on key issues.

“It’s hard to imagine how they can do something very substantive and do it very quickly. It’s almost as if you can have one or the other. You can have it quick, or you can have it meaningful,” said John Masswohl, director of government relations at the Canadian Cattlemen’s Association.

Solar Eclipse Coming with Nearly $700M Tab for US Employers

Add next week’s total eclipse of the sun to the list of worker distractions that cost U.S. companies hundreds of millions of dollars in lost productivity.

American employers will see at least $694 million in missing output for the roughly 20 minutes that outplacement firm Challenger, Gray & Christmas estimates workers will take out of their workday on Monday, Aug. 21 to stretch their legs, head outside the office and gaze at the nearly two-and-a-half minute eclipse.

And 20 minutes is a conservative estimate, said Andy Challenger, vice president at the Chicago-based firm. Many people may take even longer to set up their telescopes or special viewing glasses, or simply take off for the day.

“There’s very few people who are not going to walk outside when there’s a celestial wonder happening above their heads to go out and view it,” Challenger said, estimating that 87 million employees will be at work during the eclipse.

To get the overall figure of nearly $700 million, Challenger multiplied that by the Bureau of Labor Statistics’ latest estimate for average hourly wages for all workers 16 and over.

Just as the Earth is a mere speck in the universe, however, Challenger said this is still a small sum.

“Compared to the amount of wages being paid to an employee over a course of a year, it is very small,” Challenger said. “It’s not going to show up in any type of macroeconomic data.”

It also pales when compared with the myriad other distractions in the modern workplace, such as the U.S. college basketball championship known as March Madness, the recent U.S. shopping phenomenon called Cyber Monday and the Monday after the Super Bowl.

During the opening week of March Madness, the firm estimated employers experienced $615 million per hour in lost productivity as people watched games and highlights, set up pool brackets and avidly tracked their standings rather than performed actual work.

The Monday after the Super Bowl, meanwhile, resulted in an estimated $290 million in lost output for every 10 minutes of the workday spent by workers discussing the game or watching game highlights and re-runs of their favorite Super Bowl commercials.

And Cyber Monday on the heels of the U.S. Thanksgiving holiday at the start of the annual holiday shopping season resulted in $450 million in lost productivity for every 14 minutes spent shopping, not working.

Events like this are likely to have an outsized effect on smaller companies, Challenger said. When their workers are absent, small firms may not have sufficient coverage from coworkers, especially in the current tight labor market where it is hard to find skilled workers.

“When three or four people are missing from an office of 15, it’s a lot more disruptive,” Challenger said.

EVENT AMOUNT IN LOST PRODUCTIVITY

Total Eclipse:   $694 million for the 20 minutes it takes to go outside and watch the eclipse

Cyber Monday:   $450 million for every 14 minutes spent

shopping

March Madness:   $615 million for each hour spent on March Madness activities

Super Bowl:   $290 million for every 10 minutes lost

discussing the game

Fantasy Football:   $990 million for each hour of work time

spent on Fantasy Football

 

 

Electric Guitar Manufacturer Stays Plugged-In to Maryland

Sometimes, it just doesn’t pay to manufacture in the United States. Labor and land are expensive. It is why most consumer products sold here come from overseas. But a multinational electric guitar manufacturer still produces one-third of its instruments near where it started decades ago. Arash Arabasadi names that tune from Maryland.

Fashion Entrepreneur Drives Her Boutique

Danelle Johnson started designing her own clothes when she was a teenager. Not just because sewing was her hobby. She wanted to stand out among her classmates with a personal, distinctive look. Johnson’s vision of fashion motivated her to start her own design company … on wheels. As Faiza Elmasry reports, the fashion entrepreneur attracts customers who prefer her rolling retail boutique to big malls and online shopping. Faith Lapidus narrates.

Women Leaders Wangle Water Taps, Security in India’s Slums

Hansaben Rasid knows what it is like to live without a water tap or a toilet of her own, constantly fearful of being evicted by city officials keen on tearing down illegal settlements like hers in the western Indian city of Ahmedabad.

The fear and lack of amenities are but a memory today, after she became a community leader in the Jadibanagar slum and pushed residents to apply for a program that gave them facilities and a guarantee of no evictions for 10 years.

“We didn’t even have a water tap here — we had to fetch water from the colony near by, and so much time went in just doing that. People kept falling sick because there was just one toilet,” she said.

“Now that we have individual water taps and toilets, we can focus on work and the children’s education. Everyone’s health has improved, and we don’t need to be afraid of getting evicted any day,” she said, seated outside her home.

Jadibanagar, with 108 homes, is one of more than 50 slums in Ahmedabad that have been upgraded by Parivartan — meaning “change” — a program that involves city officials, slum dwellers, a developer and a nonprofit organization.

Every household pays 2,000 rupees ($31) and in return, each home gets a water tap, a toilet, a sewage line and a stormwater drain. The slum gets street lights, paved lanes and regular garbage collection.

Each home also pays 80 rupees as an annual maintenance fee, and the city commits to not evicting residents for 10 years.

Negotiation skills

A crucial part of the program is the involvement of a woman leader who brings residents on board, deals with city officials and oversees the upgrade.

Nonprofit Mahila Housing Trust has trained women residents to be community leaders in a dozen cities in the country, including more than 60 in Ahmedabad.

“Women are responsible for the basic needs of the family, and most also work at home while the husband works outside, so the lack of a water tap or a toilet affects them more,” said Bharati Bhonsale, program manager at Mahila Housing Trust.

“Yet they traditionally have had little influence over policy decisions and local governance. We train them in civic education, build their communication and negotiation skills, and teach them to be leaders of the community,” she said.

About 65 million people live in India’s slums, according to official data, which activists say is a low estimate.

That number is rising quickly as tens of thousands of migrants leave their villages to seek better prospects in urban areas. Many end up in overcrowded slums, lacking even basic facilities and with no claim on the land or their property.

Yet slum dwellers have long opposed efforts to relocate them to distant suburbs, which limits their access to jobs. Instead, they favor upgrading of their slums or redevelopment.

Earlier this month, officials in the eastern state of Odisha said they would give land rights to slum dwellers in small towns and property rights to those in city settlements in a “historic” step that will benefit tens of thousands.

In Gujarat state, as Jadibanagar is on private land, it is not eligible for the city’s redevelopment plan.

“These homes are all illegal, but that doesn’t mean the people cannot live decently,” said Bhonsale.

“With redevelopment, there is demolition and a move, and that can take longer to convince people of, with the men usually making the decision. But with an upgrade, the women make the decision very quickly by themselves,” she said.

Bottom up

Elsewhere, in Delhi’s Savda Ghevra slum resettlement colony where about 30,000 people live, nonprofit Marg taught women residents to demand their legal right to water, sanitation and transport.

A group of women then filed Right to Information petitions, to improve their access to drinking water, buses and sanitation.

“The women bear the brunt of not having these amenities, and are therefore most motivated to do something about the situation,” said Anju Talukdar, director of Marg.

“The leaders are the ones who show up for meetings, are engaged and keen to learn how to use the law to improve their lives,” she told the Thomson Reuters Foundation.

Contrary to perceptions that slums are run by petty criminals who resist efforts to redevelop or upgrade, women leaders in Jadibanagar and Savda Ghevra are actively engaged in bettering everyone’s lives.

Leaders often emerge from a bottom-up process, with reputations for getting things done — in particular, resisting evictions and securing basic services, according to research by Adam Auerbach at the American University and Tariq Thachil at Vanderbilt University.

“They are themselves ordinary residents, living with their families and facing the same vulnerabilities and risks as their neighbors; they, too, want paved roads, clean drinking water, proper sanitation and schools for their children,” they said.

Women leaders, while still a minority, are “rarely token figures” serving male heads of households, and are “just as active, assertive and locally authoritative as their male counterparts,” they said in an email.

Rasid in Jadibanagar, whose two sons and their families live in homes alongside hers, is certain her leadership helped residents improve their homes and their lives.

“Everyone wants security and nicer homes, and they are willing to pay. Someone just has to get it done,” she said.

“I am illiterate, I cannot read, but I know now how to talk to officials and the developer and tell them what we want, and make sure they deliver,” she said.

For Moms Heading Back to Work, ‘Returnships’ Offer a Path Forward

How does a former stay-at-home mom become an employee of a tech company that could be worth more than $1 billion?

For Ellein Cheng, mom to a 5½- and a 2½-year-old, the answer involved a “returnship.”

So-called returnships are internships that target men and women who have been out of the workforce, either for childrearing or other caregiving. It gives them a chance to retrain in a new field.

In Cheng’s case, the former math teacher and tutor took a returnship at AppNexus, an online advertising company.

For companies, returnships are an opportunity to tap into more mature and professionally diverse talent pools. For participants who may be out of the workforce, it’s a chance to refresh their networks, learn new skills and try on new roles.

Beneficial arrangement

For both parties, it’s a low-risk, low-commitment arrangement. Companies can achieve their goals to make the employee ranks more diverse. Job seekers can potentially find full-time work.

Cheng’s returnship was set up by Path Forward, a New York-based nonprofit that works with tech companies to coordinate 16-week, paid assignments for those who have been away from the labor market for two or more years because of caregiving.

The organization partners with tech companies that range in size from 30-person startups to behemoths such as PayPal, which has more than 10,000 employees.

“What these companies of every size in the tech sector have in common is rapid growth, and also not enough talent to fulfill their needs,” said Tami Forman, executive director at Path Forward.

Women re-entering the workforce often struggle to explain the gap in their resume and find employment harder to come by, Forman said.

“They often get feedback from companies and recruiters and hiring managers that makes them believe that they’ll never be hired, that no one will ever overlook their gap,” she said. The organization says it gets results — 40 out of the 50 women who have gone through the program were offered ongoing employment at the companies in which they interned.

Teaching background

In her job search, Cheng applied for teaching positions but was also open to other fields. The product support work struck a chord with her in its appeal for candidates “passionate about learning and teaching.”

The program gave both managers and participants the chance to see if a long-term opportunity would be the right fit for them.

It also provided a dose of inspiration.

Other employees were “inspired to see people stepping out of their comfort zone, taking a big risk, working on something they haven’t done before,” Lorraine Buhannic, senior director of talent acquisition at AppNexus, said.

For Cheng, the inspiration came from a more personal place — her daughters.

They are growing up “in a world that is changing so quickly with technology, and I just want to be part of that,” she said. “I want to grow with them, I want to learn with them.”

In the end, the match worked. After the returnship, AppNexus hired Cheng as a product support specialist.

Now working in the fast-paced world of online advertising, Cheng says she doesn’t feel she has left her old self behind.

“I’m still obviously learning a lot, because I’m switching careers completely, but at the same time, still bringing the teaching element part of it every day to work,” she said.

At NAFTA Talks, Businesses Eager to Say: Do No Harm

Steps away from this week’s NAFTA trade negotiations, business unified in hopes of sending a singular message: do no harm.

Representatives from the United States, Canada and Mexico convened behind closed doors at a Washington hotel in an effort to strike a new North American Free Trade Agreement. And not far away, industry representatives from all three nations sat waiting and hoping to influence the talks.

After two days of meetings, lobbyists admitted privately that they remained mostly in the dark, swapping rumors about dates and times of future meetings but unsure what progress was being made in the first round of discussions. The meetings were largely expected to be procedural, with little discussion on substance in the early days.

The decision to renegotiate NAFTA has largely been driven by politics, chiefly U.S. President Donald Trump, who earlier this year threatened to withdraw entirely.

Business, on the other hand, has largely praised the agreement and hopes to persuade all three governments to make minimal changes to the pact.

More than $1 trillion in trade

U.S.-Canada-Mexico trade has quadrupled since NAFTA took effect in 1994, surpassing $1 trillion in 2015.

“We’re all in the same boat,” said Flavio Volpe, president of the Canada’s Automotive Parts Manufacturers’ Association. “In the end we all serve primarily the U.S. consumer. So if you’re going to raise the cost structure, or if you’re going to change the dynamic flow of goods or people in those three countries, you’re really hurting the cost to market for the U.S. customer.”

The U.S. had an autos and auto parts trade deficit of $74 billion with Mexico last year, without which, there would have been a U.S. trade surplus

The United States had a much smaller $5.6 billion automotive trade deficit with Canada last year, but autos was the still a major component of an $11.8 billion overall U.S. goods trade deficit with Canada last year. But including services trade, the United States ran an overall surplus with Canada.

Volpe’s counterparts from the United States and Mexico were also on hand, with hopes of presenting a united front not to see a disruption to the auto industry.

Matt Blunt, president of the American Automotive Policy Council, which represents General Motors, Ford and Fiat Chrysler Automobiles, stopped by the talks hotel to chat with negotiators, answer questions and “glean information” about U.S. negotiating objectives.

However, he said insights into the talks were hard to come by, as negotiating teams had not yet revealed details of their proposals to each other.

“There are a lot of poker-faces around here,” he said.

Lobbyists always nearby

He wasn’t the only American lobbyist floating in and out of the hotel. Some held lunch meetings in the hotel restaurants and then returned to their downtown offices. From mining, to textiles to dairy farmers, various groups held sideline meetings.

About 100 business representatives from Mexican companies waited in a meeting room to see if there were any questions negotiators might have for them. And Canadian industry groups mostly worked on their own.

For the most part, the business groups presented a united front.

Juan Pablo Castanon, president of the Mexican business group Consejo Coordinador Empresarial, said his group has been working with the U.S. Chamber of Commerce for three years. After the November U.S. elections, they began working to tout the benefits of NAFTA.

“The level of contact and communication is intense and one of collaboration,” Castanon said.

The U.S. Chamber of Commerce, the largest business lobby in Washington that represents companies big and small across the country, confirmed they plan to attend all the sessions, where they expect to hold sideline meetings with other business groups and government officials. The Chamber may also hold sideline events or briefings during future discussions.

Even industry groups who weren’t in agreement with their North American counterparts found other stakeholders to discuss common ground.

The Canadian Dairy Farmers are at odds with their American counterparts, but still found a chance to talk, said the Canadian group’s spokeswoman Isabelle Bouchard.

“To have discussions with counterparts within our own industry and even different industries who are in similar situations than us, it’s important, and we have seen though past trade negotiations how important it is,” Bouchard said.

 

Auto Groups Side with Canada, Mexico on NAFTA Origin Rules

Auto industry groups from Canada, Mexico and the United States are pushing back against the Trump administration’s demand for higher U.S. automotive content in a modernized North American Free Trade Agreement.

At talks underway this week in Washington, automaker and parts groups from all three countries were urging negotiators against tighter rules of origin, said Eduardo Solis, president of the Mexican Automotive Industry Association.

But U.S. Trade Representative Robert Lighthizer confirmed the industry’s fears that the administration of President Donald Trump was seeking major changes to these rules to try to reduce the U.S. trade deficit with Mexico.

“Rules of origin, particularly on autos and auto parts, must require higher NAFTA content and substantial U.S. content. Country of origin should be verified, not ‘deemed,’” Lighthizer said on Wednesday in opening remarks.

Fiat Chrysler, Ford, GM represented

Mexican Economy Minister Ildefonso Guajardo and Canadian Foreign Minister Chrystia Freeland both said they were not in favor of specific national rules of origin within NAFTA — a position that the industry agrees with.

“We certainly think a U.S.-specific requirement would greatly complicate the ability of companies, particularly small- and medium-size enterprises, to take advantage of the benefits of NAFTA,” said Matt Blunt, president of the American Automotive Policy Council.

The trade group represents Detroit automakers General Motors, Ford, and Fiat Chrysler.

His comments were echoed by Flavio Volpe, president of Canada’s Automotive Parts Manufacturers Association.

“Anytime you say this list or a part of this list has to come from one specific country you’re going to hurt all three countries,” he said.

Deficits can’t continue to grow

The United States had an autos and auto parts trade deficits of $74 billion with Mexico and $5.6 billion with Canada, both major components of overall U.S. goods trade deficits with its North American neighbors — deficits that Lighthizer said could no longer continue.

Lighthizer’s mention of tightening verification requirements is a reference to expanding the parts tracing list, which is used to determine whether companies meet the 62.5 percent North American content requirement for autos and 60 percent for components.

Devised in the early 1990s, the tracing list covers almost none of the sophisticated electronics found in today’s cars and trucks, most of which come from Asia. Putting these on the tracing list could force suppliers to source these components from North America or pay tariffs on them.

Software content a new issue

Volpe said any changes to this must also capture the North American system design work and software content for these components that is not currently included.

“A car today probably has 25 to 30 percent advanced electronics, software content in it. In 1994, it had zero or 1 percent,” Volpe said. “Could you address the tracing to help you get to NAFTA compliance level by capturing some of the work that’s being done in Silicon Valley or Waterloo, Canada? Yes.”

John Bozzella CEO of the Association of Global Automakers, which represents international-brand carmakers, said NAFTA has allowed a major expansion of auto exports, with more than 1 million more vehicles built annually in the United States than in 1993.

“Negotiators should be mindful of this success as they work to modernize the agreement,” Bozzella said, whose organization represents international brand carmakers with U.S. plants, including Toyota, Honda and BMW.

 

US VP Pence: US Wants Increased Trade with Latin America

U.S. Vice President Mike Pence said on Thursday that Washington wants more trade and investment with Latin America, pushing back against perceptions in the region that the Trump administration has an isolationist agenda.

Speaking during a visit to the Panama Canal at the end of a Latin American tour, Pence said the United States was seeking to keep the spirit of the original North American Free Trade Agreement (NAFTA) in the pact now being renegotiated in Washington.

Pence said he wanted a NAFTA deal that was a “win, win, win” for the United States, Mexico and Canada, taking a more conciliatory tone than U.S. negotiators who have warned the deal needed a major overhaul to favor U.S. workers.

Pence later reiterated the United States’ concerns about the tense political situation in Venezuela, but took a more measured approach than U.S. President Donald Trump.

Last week, Trump said the United States had “many options for Venezuela including a possible military option if necessary.”

Pence said on Thursday that Venezuela was becoming a dictatorship and that the United States would not stand by while it was destroyed.

He said he was sure the United States, with its allies in Latin America, would find a peaceful solution to the situation in Venezuela.

Panama’s President Juan Carlos Varela voiced concern over Venezuela and said that Panama would in the coming days announce measures against it, including immigration actions, to pressure Caracas into restoring democratic order.

Pakistan Railway Revival Clashes With Shanty Towns

After many false starts, plans to resurrect a railway in Pakistan’s teeming metropolis of Karachi are moving ahead with the help of Chinese cash. Not everyone is happy.

The Chinese-funded $2 billion project to revive Karachi Circular Railways (KRC), nearly two decades since it was shut down, has been touted as a way to ease pollution and chronic congestion in the port city of 20 million people.

It is also viewed with suspicion by Pakistanis who have built homes and businesses along the 43-km route connecting Karachi’s sprawling suburbs with the industrial and commercial areas of the megacity.

In April, a push to remove shanty towns near the rubbish-strewn railway track was met with violence as residents clashed with police and set fire to machinery used for demolishing homes.

Officials say nearly 5,000 houses and 7,650 other encroaching structures have been erected along the route of the old KRC, which closed in 1999 after 29 years of shunting passengers across the sweltering city.

Three-wheel auto-rickshaws and mini-buses, often cramped and with no air conditioning, have filled the transport gap on Karachi’s streets despite grumbling from commuters.

Work on the new KRC is scheduled to begin later this year, with financing from the $57 billion China-Pakistan Economic Corridor (CPEC) project, part of Beijing’s wider Belt and Road initiative to build trade routes from Asia to Europe and Africa. Beijing’s cash is building motorways and power plants to alleviate Pakistan’s energy shortages, but Karachiites hope it could also modernize their city at a time when traffic appears to be spiraling out of control.

“Let’s hope under CPEC, KCR is revived and people will get an alternate to miserably public transport,” said Manzoor Ahmed Razi, chairman of the Railway Workers Union.

Petrobras Argentina Sale Under Scrutiny in Brazil

Brazilian prosecutors plan to investigate last year’s controversial sale of the Argentine subsidiary of Petrobras, Brazil’s state-controlled oil company, a lawyer representing some Petrobras shareholders said on Wednesday.

Petrobras, formally known as Petroleo Brasileiro SA , sold its 67.2 percent stake in Petrobras Argentina SA for $892 million to Pampa Energia SA, Argentina’s largest power company.

The sale has already drawn scrutiny from Brazil’s Congress and a federal audit court, and lawyer Felipe Caldeira said prosecutors were now looking into it as part of Brazil’s sweeping “Car Wash” anti-corruption investigation.

Caldeira, representing a group of minority Petrobras shareholders, told Reuters he spoke on Tuesday to prosecutors on a task force in Curitiba leading the Car Wash probe and gave them information on the sale.

“They are very interested and will investigate this,” said Caldeira, who filed a civil case in a Rio de Janeiro court in May alleging that the sale fetched a below-market price and was harmful to the interests of minority shareholders.

Federal prosecutors in Curitiba said the task force had not met with Caldeira but said that any relevant information about the case would be studied.

Petrobras bought the Argentine unit from energy conglomerate Perez Companc in 2002 for $1 billion, plus $2 billion in debt.

The sale 14 years later for much less sparked controversy in Brazil and led lawmakers to call on Petrobras and Pampa executives, and lawyer Caldeira, to testify before a committee hearing on Wednesday.

The controversy has grown since, Aldemir Bendine, chief executive officer of Petrobras at the time of the sale, was jailed last month on suspicion he received bribes from construction conglomerate Odebrecht in a political graft scandal that has led to the arrest of dozens of executives and politicians.

Pampa’s executive vice president and legal director Diego Salaverri told the committee the sale was transparent and competitive and his company made the best offer that was a “fair” price in a depressed market.

Oil prices had dropped drastically from $100 to $30 and a climate of uncertainty prevailed in Argentina, which had currency controls and a ban on remittances, he said.

Petrobras’ legal manager for acquisitions and divestment, Claudia Zacour, told the committee the sale of Petrobras Argentina was part of the Brazilian oil company’s divestment plan to reduce debt and focus on core activities.

The net positive result for Petrobras of owning and selling the Argentine unit was $1.6 billion when taking into account intercompany loans, the sale of some of its assets and the distribution of dividends, Zacour said.

Brazil’s federal audit court has said it was investigating the sale of Petrobras Argentina at the request of a senator but has not concluded its findings.

In response to Caldeira’s lawsuit, a federal judge in Rio de Janeiro sent Argentine authorities a request that the chairman of Pampa Energia, Marcos Marcelo Mindlin, testify in the case.

With a majority stake, Pampa SA, Mindlin’s holding company, continued its takeover of Petrobras Argentina in November by acquiring 11.85 percent held by the Argentine state pension system ANSES.

The transaction is being investigated by Argentine judge Claudio Bonadio, who ordered the search and seizure of documents from government offices in May in a case brought by center-left lawmaker Victoria Donda.

“The fund’s shares were sold very cheap, and we want to know why, because thousands of pensioners lost money,” Donda told Reuters in Brasilia, where she traveled to attend Wednesday’s hearing.

As Rural Sri Lanka Dries Out, Young Farmers Look for Job Options

Scorched by a 10-month drought that has killed crops and reduced residents to buying trucked-in water, Adigama’s young people are voting with their feet.

At least 150 youth have left this agricultural village 170 kilometers northwest of Sri Lanka’s capital since the drought began, looking for jobs in the country’s cities, or overseas, village officials say.

Few are expected to come back, even when the rains end.

“If they get the lowest-paying job overseas, or in a garment factory, they will not return,” Sisira Kumara, the main government administrative officer in the village of 416 families, said as he walked through a dried and long-abandoned maize plot. “They will work at construction sites or as office helpers — anything they can get their hands on.”

W.M. Suranga, 23, who left his family’s withering rice paddy six months ago for Colombo, said working for low wages in the city is preferable to struggling with no rain at home.

“At least I am sure of a paycheck at the end of the month. This uncertainly of depending on the rains is too much of a risk,” he said.

As Sri Lanka struggles with its worst drought in 40 years, farmers in the hardest-hit areas are migrating for work — with some wondering whether farming remains a viable career as climate change brings more frequent extreme weather.

“There is no income here. All the crops have failed in the last four seasons,” Kumara said.

Little to harvest for a year

Paddy rice and vegetables are usually the main source of income in Adigama. But since the last big rains in July 2016, there has been little to no harvest.

Older villagers like Rajakaruna Amaradasa, 55, say that at their age they don’t have the option of looking outside the village for a new life.

After four decades of harvesting rice and herding cattle, he abandoned his paddy fields earlier this year when his harvest failed, and now spends his days moving his cattle around, looking for scarce water.

“It will take us another two to three harvests to recover our losses and pay off any debt. Even then it all depends on the rain,” Amaradasa said.

With average rains, Amaradasa said he used to make between 30,000 and 40,000 rupees a month ($200-$260). Now his income has fallen to a third of that, he said.

Sri Lanka’s drought, which by mid-August had affected 19 of the island’s 25 districts, has particularly devastated arid regions that lie outside the country’s wet western plains and mountains.

A joint report by the World Food Program and the U.N. Food and Agriculture Organization, released in mid-June, classified the drought as worst in 40 years.

It predicted rice production this year in Sri Lanka would be almost 40 percent less than last year, and 35 percent lower than the five-year average. That amounts to the lowest harvest since 2004, it said.

Climate change

It also warned that Sri Lanka “is highly susceptible to climate change, and therefore the frequency of the weather hazards will likely increase as the earth warms.”

The impact on Sri Lanka’s economy is also likely to be substantial, with more than a quarter of the country’s labor force working in agriculture, a sector that contributes 8 percent of gross domestic product, the report said.

The situation is worst in villages like Adigama that rely almost entirely on rain to grow crops.

Suranga, the Adigama youth now working in Colombo, said he has no plans to return home. Instead he dreams of traveling to the Middle East as a construction worker.

“What is the guarantee there will be no more droughts or floods?” he asked. “When my father was my age, maybe the rains were much more predictable. Now only a fool will bet on the rains.”

Canada Approves First Cryptocurrency Sale in Property Rights Shake-Up

Canadian financial regulators have approved the public sale of a new digital currency in the country’s first official endorsement of money created independently of the government or central banks, company officials said on Wednesday.

Produced with digital encryption techniques, cryptocurrencies like Montreal-based impak Coin allow users to create their own money supply – with potentially significant impacts for how wealth and property rights are controlled.

Impak Coin has already raised more than C$1.5 million ($1.18 million) for the new currency and plans to launch an Initial Coin Offering – or a public sale of the digital money – this month.

By allowing people to create a new currency, the project aims to reduce the power of big banks in determining how property rights are managed and money is created, said Paul Allard, chief executive of impak Finance, the social enterprise behind the project.

“It is up to communities to decide how to manage a currency, it is not only for the government to decide,” Allard told the Thomson Reuters Foundation.

‘No need for government’

Throughout modern history governments have had control over how money is created and the power to enforce contracts and determine how goods and services are transferred.

Cryptocurrencies – through blockchain, the information storage and database system they use – have challenged that power, said Simon Trimborn, a professor at the Free University of Berlin who studies digital networks.

“The link between cryptocurrencies and individual property rights is the information storage and transaction system behind cryptocurrencies, the blockchain,” Trimborn told the Thomson Reuters Foundation.

“It is a database which can guarantee property rights while there is no need for relying on a company or government.”

Contracts are made digitally between peers and transactions are often conducted without government oversight, reducing the state’s power over the market.

The move by financial authorities to approve the sale of the digital money means “confidence and trust for investors”, said Jean-Philippe Vergne, a professor at the Ivey Business School in Ontario, Canada, who studies cryptocurrencies.

“We are observing a profound change in the nature of capitalism,” Vergne told the Thomson Reuters Foundation. “For the first time we have a technology that allows us to remove intermediaries such as government or central banks.”

Digital impact

Impak Finance hopes to raise up to C$10 million from its first sale of coins. Users who buy the new currency will be able to spend it via a mobile wallet connected to their phones.

More than 500 businesses have signed up to accept the new currency when it launches, Allard said.

He expects that will grow into the thousands as the project develops a “critical mass” of users, leading to more buyers and sellers making transactions.

Users will be able to exchange impak coins for traditional money which will be credited to their accounts after an initial waiting period in order to stop speculators from causing volatility in the currency’s value, Allard said.

Impak Finance will initially keep 40 percent of the money invested in the new currency as reserves in order to have cash on hand if users want to exchange it for traditional money.

Only businesses adhering to social and environmental standards are able to use the currency, said Allard, who hopes consumers interested in ethical purchasing will be attracted to the plan.

The “impact economy” – a small but growing sector that seeks to put the achievement of social good at the center of business – is expected to grow by more than 15 percent next year in North America, Allard said.

New type of property

Impak Finance will be entering a crowded market of new digital currencies, analysts said.

Following the growth of bitcoin, the most well known cryptocurrency, there are now more than 1,000 similar digital currencies being traded over the internet, said Arvind Narayanan, a computer science professor at Princeton University in the United States.

Most of these new digital offerings, however, are used for speculation – investors hoping the currency will gain popularity and then rise in value – rather than buying and selling tangible goods and services, Narayanan said.

“People are trying to get the state out of money and various forms of property,” Narayanan told the Thomson Reuters Foundation. “regulators and law enforcement are trying to adapt to a new technological development.”

($1 = 1.2707 Canadian dollars)

 

US Trade Envoy Says NAFTA Has ‘Failed’ Americans

U.S. President Donald Trump’s top trade official laid down a hard negotiating line for revamping the North American Free Trade Agreement on Wednesday, saying that major changes were needed to slash U.S. trade deficits and boost U.S. content in autos.

U.S. Trade Representative Robert Lighthizer said NAFTA had “failed many, many Americans” and Trump was not interested in merely tweaking the 23-year-old pact, and would seek major changes that would increase North American and U.S. content for autos and strong labor standards.

“We need to ensure that the huge trade deficits do not continue and we have balance and reciprocity. This should be periodically reviewed,” Lighthizer said in opening remarks at NAFTA negotiations in Washington. “The rules of origin, particularly on autos and auto parts, must require higher NAFTA content and substantial U.S. content.”

Trump Goes After Amazon, Again

President Donald Trump is renewing his attacks on e-commerce giant Amazon, and he says the company is “doing great damage to tax paying retailers.”

 

Trump tweets that “towns, cities and states throughout the U.S. are being hurt – many jobs being lost!”

The president has often criticized the company and CEO Jeff Bezos, who also owns The Washington Post.

 

Many traditional retailers are closing stores and blaming Amazon for a shift to buying goods online. But the company has been hiring thousands of warehouse workers on the spot at job fairs across the country. Amazon has announced goal of adding 100,000 full-time workers by the middle of next year.

Trump has in the past tweeted that Amazon was not paying “Internet taxes.” But it’s unclear what he meant by that. Amazon.com collects state sales taxes in all 45 states with a sales tax and the District of Columbia, according to their website. State governments have sought to capture sales taxes lost to internet retailers, though they have struggled with a 1992 Supreme Court ruling that retailers must have a physical presence in a state before officials can make them collect sales tax.

 

The issue arose recently in South Carolina, which has pursued legal action to recoup tax revenue it says it’s owed. This summer, the state Department of Revenue filed a case with the Administrative Law Court, alleging that Amazon had failed to collect taxes on third-party merchant sales.

 

Third-party merchant sales involve items that can be bought on Amazon.com, but the company acts solely as a middleman between buyers and sellers. Amazon processes the payments and offers other support to the parties involved.

 

The state claims that Amazon owes the state $12.5 million in taxes, penalties and interest from first quarter of last year alone, according to the complaint obtained by The Associated Press.

 

For years, the Seattle company fought against collecting sales taxes from its customers. According to the National Conference of State Legislatures, South Carolina was among 10 states that initially gave Amazon a temporary tax reprieve in exchange for jobs and investment, voting in 2011 to give the company until the beginning of 2016 before the state levied taxes.

 

According to the conference, that deal made South Carolina the last state to collect among those where officials cut similar deals with Amazon. The company promised to create at least 2,000 full-time jobs and invest $125 million by Dec. 31, 2013. It opened two distribution centers in the state.

 

Amazon did not immediately respond to an emailed request for comment.

 

 

Brazil Lawmakers Seek $1B in Taxpayer Money for Election Campaigns

Brazilian lawmakers facing a dearth of financing for their re-election campaigns next year proposed on Tuesday creating a fund of 3.6 billion reais ($1.1 billion) in taxpayer money to help their parties foot the bills.

The Supreme Court banned corporate donations to campaigns in 2015, drastically reducing political fund-raising.

On top of that, a massive investigation into endemic corruption in the country has uncovered a web of political bribes and kickbacks that effectively shut off under-the-table payments that politicians also relied upon.

The taxpayer fund proposed by a special committee of the lower house of Congress is part of an effort to reform Brazil’s discredited political system by reducing the proliferation of parties and making politicians more accountable to voters.

The constitutional amendment is expected to face the first of two floor votes next week in the lower chamber. It must also be approved twice by two-thirds of the Senate.

Creation of the fund was backed by most parties, despite public criticism that lawmakers should not be appropriating public money for campaigning in the midst of a budget crisis and deep recession.

The proposed legislation includes replacement of a proportional system for electing congressmen based on party lists by one where candidates with the most votes get elected.

Smaller parties opposed the change, saying it will favor the bigger established parties and the re-election of better-known politicians, while hindering the emergence of fresh faces in Brazilian politics.

Backers of the so-called “district” system say it would stop highly popular candidates from pulling in unknown politicians by party lists.

Another reform bill that has already passed the Senate establishes a minimum of votes that parties need to continue existing, a move to reduce the number of parties, now at 35.

The proliferation forces governments to forge complex coalitions to stay in power by distributing jobs, influence and pork barrel projects, which critics say is fertile ground for graft.

The proposals must be approved in Congress by Oct. 7 to apply for next year’s elections.

Individual campaign donations are allowed, but lawmakers are discussing limits of self-financing to even out the playing field and avoid rich Brazilians getting elected with their own money as millionaire Sao Paulo Mayor Joao Doria did last year.

Trump Orders Faster Permitting on Infrastructure Projects

U.S. President Donald Trump on Tuesday signed an executive order to speed approvals of permits for highways, bridges and other major building efforts as part of his proposal to spend $1 trillion to fix aging U.S. infrastructure.

The text of Trump’s executive order was not immediately available. Earlier, sources said it revoked an Obama-era executive order that required strict building standards for government-funded projects to reduce exposure to increased flooding from sea level rise and other consequences of climate change.

“No longer will we allow the infrastructure of our magnificent country to crumble and decay,” Trump said at a press conference at Trump Tower in New York.

“While protecting the environment, we will build gleaming new roads, bridges, railways, waterways, tunnels and highways.

We will rebuild our country with American workers, American iron, American aluminum, American steel,” Trump said.

Revoking standards set by Obama

By revoking standards set by the Obama administration, Trump hopes to “streamline the current process” for infrastructure projects, a government official said.

Separately a White House spokesperson said the order would set a two-year goal for completing permits needed on major infrastructure plans, and create a “one Federal decision” protocol for big projects.

The Trump administration has complained that it takes too much time to get permits and approvals for construction projects. It has issued dozens of rules and orders to reverse Obama-era regulations addressing climate change and its consequences such as rising sea levels and more severe storms.

Factor in scientific projections

The Obama-era standard required that builders factor in scientific projections for increased flooding and ensure projects can withstand rising sea levels and stronger downpours.

The Obama administration required all federal agencies apply the standard to public infrastructure projects from housing to highways.

It raised base flood levels to a higher vertical elevation to “address current and future flood risk and ensure that projects funded with taxpayer dollars last as long as intended,” according to a 2015 Treasury Department presentation.

U.S. officials have estimated the United States suffered $260 billion in flood related damages between 1980 and 2013.

Some disagree with decision

Rafael Lemaitre, former director of public affairs at FEMA who worked on the Obama-era order, said Trump is undoing “the most significant action taken in a generation” to safeguard U.S. infrastructure.

“Eliminating this requirement is self-defeating; we can either build smarter now, or put taxpayers on the hook to pay exponentially more when it floods. And it will,” he said.

Flood policy expert Eli Lehrer, president of the libertarian R Street Institute who has criticized many Obama initiatives, said that in this case, “The Trump administration is acting very rashly in part out of the desire to undo a climate measure” from its predecessor.

He called Trump’s order “an enormous mistake that is disastrous for taxpayers,” adding the Obama rule “would have saved billions of dollars over time.”

 

Tech Companies Ramp Up NAFTA Lobbying on Eve of Trade Talks

Technology companies, such as Microsoft and Cisco Systems, have ramped up lobbying ahead of talks to renegotiate the North American Free Trade Agreement, looking to avoid any future restrictions on cloud storage and to promote an international pact to eliminate technology goods tariffs.

U.S., Mexican and Canadian negotiators are due to start talks on the 23-year-old trade pact on Wednesday. Farming and transportation groups have traditionally dominated lobbying on NAFTA, but technology lobbyists are helping lead the recent surge in efforts to influence Washington, according to data from the Center for Responsive Politics.

Tech companies and trade organizations disclosed they had 48 arrangements with lobby groups that discussed NAFTA with administration officials or lawmakers in the second quarter, up from 17 groups in the first quarter and one group at the end of 2016, according to the data.

“It’s both defensive and offensive,” Devi Keller, director of global policy for the Semiconductor Industry Association, said of the industry’s position on the new talks. “There is an opportunity for expansion.”

The industry now has almost as many lobby groups representing its views on NAFTA as the transport sector, which includes automakers. That sector had 52 lobbying groups discussing the trade pact with government officials between April and June. Agriculture still dominates the NAFTA lobbying effort with 86 arrangements with lobbying groups.

While the auto and farm lobbies are seeking to preserve cross-border supply chains and to retain access to markets in Mexico and Canada, the tech sector wants a revamped NAFTA to help it grow future business.

President Donald Trump has blamed NAFTA for the loss of U.S. manufacturing jobs and threatened to withdraw from the pact unless it can be reworked in the United States’ favor.

Tech firms want a ban on any future government requirements that providers of services, such as cloud computing, store data in a particular country. They also seek a commitment by NAFTA members to join a broader international pact to eliminate all tariffs on a broad range of information technology goods, including computers, smartphones, semiconductors and medical devices.

Today, the United States and Canada already subscribe to the broader tech agreement but Mexico does not.

Template for future trade

While tech goods already face no tariffs under NAFTA and industry representatives said there are no data flow restrictions in the region hampering trade, U.S. firms want an updated NAFTA to help them access other markets by serving as a tech template for future trade pacts.

Tech industry associations have sent letters to the Trump administration asking negotiators to prioritize free flows of data and low tariffs as well as global cybersecurity standards, and have met with staff at the U.S. Trade Representative.

“We’re fairly confident the issues we identified will be addressed in the negotiations,” said Ed Brzytwa, director of global policy at the Information Technology Industry Council.

It remains unclear, however, how prominently tech concerns will feature at NAFTA talks given Trump’s focus on manufacturing.

The CRP, a nonprofit group that advocates for government transparency, includes media and publishing firms in the technology sector, but the overwhelming majority of the sector’s disclosures on NAFTA came from hardware, software and digital services firms.

The CRP’s database incorporates disclosures to both the Senate and the House of Representatives and includes both in-house lobbyists and external lobbying firms.

Cisco, Microsoft, Amazon

Cisco Systems, a networking hardware company, had as many as 10 lobbyists working on NAFTA issues. On a lobby disclosure form reviewed by Reuters, Cisco Systems listed NAFTA and government procurement as the trade issues handled by its lobbyists.

Microsoft, which counts cloud computing and software as core businesses, had as many as 13 lobbyists working on NAFTA, according to the CRP database.

The disclosure forms filed by Microsoft do not make clear whether all 13 lobbied on NAFTA, which is listed along with several other trade-related issues and cloud computing.

Amazon, a major cloud services provider and internet retailer, also cited NAFTA as well as “customs procedures” in its lobbying disclosure. The Trump administration has proposed easing customs barriers for online purchases.

Cisco Systems and Amazon declined to comment for this story, while Microsoft representatives did not respond to a request for comment.

Difficult Negotiations Ahead as NAFTA Talks Begin in Washington

The first round of negotiations between the US, Canada and Mexico begins this week on what President Donald Trump has called “the worst trade deal ever.” He blames the 2-decades-old North American Free Trade Agreement (NAFTA) for the loss of millions of manufacturing jobs in the US. Trump has vowed to scrap the agreement, unless the US gets a ‘fair deal.’ But trade experts warn that failure is not an option, especially when the stakes are so high. Mil Arcega reports.

China: US ‘Baring of Fangs’ on Trade Will Hurt Both Sides

A decision by the United States to investigate China’s trade practices is a unilateralist “baring of fangs” that will hurt both sides, China’s state news agency Xinhua said Tuesday.

U.S. President Donald Trump on Monday authorized an inquiry into China’s alleged theft of intellectual property that administration officials said could have cost the United States as much as $600 billion.

U.S. Trade Representative Robert Lighthizer will have a year to look into whether to launch a formal investigation of China’s trade policies on intellectual property, which the White House and U.S. industry lobby groups say are harming U.S. businesses and jobs.

“While it is still too soon to say that the United States intends a showdown with China on trade, it is no exaggeration that the latest baring of fangs on Washington’s part against China, like all the other unilateral moves by Washington, will hurt not only China, but the United States itself in the long run,” Xinhua said.

Xinhua said while Chinese exporters could be the first to suffer from trade sanctions, the pain would soon spread to U.S. industries and households, adding that China was willing to resolve any disputes between the two sides through dialogue. 

The investigation is likely to cast a shadow over U.S. relations with China, its largest trading partner, just as Trump is asking Beijing to put more pressure on North Korea to give up its nuclear program.

Ken Jarrett, president of the American Chamber of Commerce in Shanghai, said in a statement Tuesday that trade and North Korea should not be linked, and said the investigation was a sign of growing U.S. discontent with Chinese trade practices.

“The president’s executive order reflects building frustration with Chinese trade and market entry policies, particularly those that pressure American companies to part with technologies and intellectual property in exchange for market access,” he said. “Chinese companies operating in the United States do not face this pressure.”

“We support actions that recognize the importance of U.S.-China commercial ties but which also encourage progress toward a more equitable trading relationship,” he said.

China Banning Coal, Iron, Seafood Imports From North Korea

China announced Monday it is banning imports of coal, iron ore, seafood and other products from North Korea in line with new United Nations sanctions approved earlier this month.

Chinese leaders had pledged to fully enforce the sanctions, which China and the other members of the U.N. Security Council unanimously adopted in response to North Korean ballistic missile tests.

The sanctions could block as much as $1 billion in North Korean exports.

China’s Commerce Ministry said the new trade ban will be fully in place by September 5.

U.S. President Donald Trump and other members of his administration have urged China to use its position as North Korea’s most important ally to pressure the country to give up its nuclear weapons program.

China has said it complies with U.N. resolutions, and on Monday the Chinese foreign ministry reiterated calls for restraint and the need to find a political resolution to the situation.

Chinese Newspaper Warns Trump Risks ‘Trade War’

A Chinese state newspaper warned Monday that President Donald Trump “could trigger a trade war” if he goes ahead with plans to launch an investigation into whether China is stealing U.S. technology.

In a commentary by a researcher at a Commerce Ministry think tank, the China Daily said Trump’s possible decision to launch an investigation, which an official says he will announce Monday, could “intensify tensions,” especially over intellectual property.

The official told reporters Saturday the president would order his trade office to look into whether to launch an investigation under Section 301 of the Trade Act of 1974 of possible Chinese theft of U.S. technology and intellectual property.

The Chinese government has yet to comment on the announcement.

A decision to use the Trade Act to rebalance trade with China “could trigger a trade war,” said the commentary under the name of researcher Mei Xinyu of the ministry’s International Trade and Economic Cooperation Institute.

“And the inquiry the U.S. administration has ordered into China’s trade policies, if carried out, could intensify tensions, especially on intellectual property rights.”

The commentary gave no indication of how Beijing might respond but Chinese law gives regulators broad discretion over what foreign companies can do in China.

If an investigation begins, Washington could seek remedies either through the World Trade Organization or outside of it.

Previous U.S. actions directed at China under the 1974 law had little effect, said the China Daily. It noted China has grown to become the biggest exporter and has the world’s largest foreign exchange reserves.

“The use of Section 301 by the U.S. will not have much impact on China’s progress toward stronger economic development and a better future,” said the newspaper.

Are Immigrants Driving the Motor City?

Beside rows of rusting shipping containers, a decorative wrought iron fence surrounds Taquería Mi Pueblo, one of the first family-run Mexican restaurants in southwest Detroit, Michigan.

Its owner, Jalisco-native José de Jesús López, surveys the trees he planted and his ornamental roosters.

“Everything was abandoned, a dump over there,” he said, walking down Dix Street. When he first arrived as an undocumented immigrant in 1981, López recalls a drug-addict-infested lot and overrun lawn.

“Mexicantown,” as the area is affectionately and marketably called today, is one of Metro Detroit’s most vibrant dining scenes for locals and tourists — and a model for other immigrant neighborhoods.

Landing destination

Like López, many foreigners stumbled upon Detroit, viewing the city as an economically viable “second landing destination” — friendly to immigrants, but with cheaper housing and commercial space than traditional immigrant hubs like New York and San Francisco.

Through the 2008 recession and recovery, native-born residents fled. But immigrants kept coming, starting new businesses, hiring local residents and making their neighborhoods a safer place for children.

A June study by Global Detroit and New American Economy reveals that the city’s immigrant population grew by 12.1 percent between 2010 and 2014, at a time when the city’s overall population declined by 4.2 percent. Though the four-year increase in immigrants amounts to merely 4,137 individuals, the study claims the effects have been widely felt.

Watch: Beleaguered Detroit Relying on Immigrants to Revitalize City

“Immigrants are leading in the city’s recovery,” said Steve Tobocman, director of Global Detroit, “particularly in its neighborhoods like Mexicantown, in Banglatown, where new residents are moving in and helping to stabilize working-class communities by fixing up homes, opening up businesses, and creating more consumers.”

Depopulation, Tobocman adds, remains Detroit’s biggest challenge moving forward, while immigrants are “our best hope to rebuilding,” especially on the neighborhood level.

No ‘magic bullet’

According to Americas Society/Council of the Americas (AS/COA) and Fiscal Policy Institute, more than one-third of Detroit-area “Main Street” business owners were immigrants as of 2013.

But data measuring their economic contributions can be misleading, says Stanley Renshon, CUNY professor of political science.

“Any economic activity is grabbed by economists as positive,” Renshon told VOA. “Yes, you increase the overall financial numbers of the country, but the people who benefit most from that are the immigrants themselves, and that’s fine. We want them to prosper, but don’t tell me that what you’re doing is saving the country or the city or the town.”

Detroit’s ongoing struggles, including a long history of political corruption and one of the highest murder rates in the country, can’t be solved by new immigrants, he added.

Hurting American workers?

Last week, White House senior adviser for policy Stephen Miller announced the administration’s support for an immigration bill that would cut legal immigration by half.

Their premise that less-skilled immigrants take away work opportunities from native-born Americans is an “America first” message intended to resonate with President Donald Trump’s base in depressed rust belt towns like Detroit.

“How is it fair, or right or proper that if, say, you open up a new business in Detroit, that the unemployed workers of Detroit are going to have to compete against an endless flow of unskilled workers for the exact same jobs?” asked Miller during a White House press briefing Aug. 2.

Global Detroit’s Tobocman says Trump’s proposed policies won’t produce any new jobs and may cost the Michigan economy hundreds of millions of dollars.

“[Trump’s actions would choke] off a critical supply of talent, of investment, and of global connections that are critical to the future of Michigan, to us being a mobility capital for the world,” Tobocman said.

Detroit suffered an unemployment rate of 28.4 percent during the great recession, but had rebounded to 7.8 percent in June.

Banglatown

Following the likes of Mexicantown, Metro Detroit’s second-most populous foreign-born community, from Bangladesh, hopes to follow suit and create a cultural tourist destination of its own: Banglatown.

“You will hardly find any vacant spot right now,” said Ehsan Taqbeem, founder of Bangladeshi-American Public Affairs Committee (BAPAC), driving his Jeep Grand Cherokee past South Asian restaurants, fabric and fish shops in Detroit and neighboring Hamtramck.

“The value of the homes have gone up since [the recession], businesses have been thriving, and traffic has gone up tremendously,” he said.

Unlike Mexicantown, Banglatown is a concept still in its early stages. There are no traditional rickshaws carrying tourists down Conant Avenue — at least not yet.

But Taqbeem, who runs an automotive retrofitting service, along with other local business owners, sees the benefit of being a branded community in a global-minded city.

Mahabub Chowdhury, part-owner of Aladdin Sweets & Cafe, found success in nourishing his neighborhood and patrons, a majority of whom are non-Bangladeshis. One regular customer, whom he describes as a nice “American white person,” calls him directly.

“Sometimes his car is broken, and he calls us, ‘Can you pick me up from my house?’ And we go to his house and bring him to our restaurant,” Chowdhury said.

‘​Believing in Detroit’

In Mexicantown, Lopez’s eyes well as he recalls his early days on a Jalisco ranch, before finding eventual success in Detroit.

“My main dream was to be able to buy a truck for my dad,” Lopez said. “I worked all my life, and when I had the money, I didn’t have my father anymore.”

Now an American citizen, López, a father of four, says he accomplished the American Dream by creating something that will outlive him and provide for the community long after he has passed.

What Detroit still needs, he said, is more people to call it home. 

“That’s happening little by little,” Lopez said. “The greatest changes won’t happen overnight.”

“They happen slowly, and that’s part of believing in oneself, believing in Detroit,” he said.