Vale SA, the world’s largest iron ore miner, knew last year that the dam in Brazil that collapsed in January and killed at least 165 people had a heightened risk of rupturing, according to an internal document seen by Reuters on Monday.

The report, dated Oct. 3, 2018, shows that Vale classified Dam 1 at the Córrego do Feijão mine in Brumadinho as being two times more likely to fail than the maximum level of risk tolerated under the company’s own dam safety policy.

Vale did not immediately respond to a request for comment.

It has previously cited an independent audit last year declaring the dam safe and said that equipment showed the structure was stable just weeks before the collapse.

First evidence of concern

The previously unreported document is the first evidence that Vale itself was concerned about the safety of the dam. It raises questions as to why the audit around the same time guaranteed the dam’s stability and why the miner did not take precautions, such as moving a company canteen that was just downhill from the structure.

U.S.-listed shares of Vale extended losses following the Reuters story, dropping as much as 2.6 percent to $11.10.

The company has lost a quarter of its market capitalization — or nearly $19 billion — since the Jan. 25 dam collapse, Brazil’s most deadly mining accident.

The disaster in the mineral-rich state of Minas Gerais was the second major collapse of a mining dam in the region in about three years.

‘Attention zone’

Entitled “Geotechnical Risk Management Results,” Vale’s internal October report placed the Brumadinho dam within an “attention zone,” saying that “all prevention and mitigation controls” should be applied.

A failure could cost the company $1.5 billion and had the potential to kill more than a hundred people, the report said.

The dam was marked for decommissioning.

Nine other dams in Brazil, out of 57 that were studied, were also placed in the “attention zone,” according to the report.

A separate Vale report dated Nov. 15, 2017, also seen by Reuters, states that any structure with an annual chance of failure above 1 in 10,000 should be brought to the attention of the chief executive and the board.

The dam’s annual chance of collapse was registered as 1 in 5,000, or twice the tolerable “maximum level of individual risk,” according to the report.

“That’s not good in my book, especially if you consider that these are meant to be long-term structures,” said David Chambers, a geophysicist at the Center for Science in Public Participation and a specialist in tailings dams.

Reuters was unable to confirm whether the board or CEO Fabio Schwartzman were made aware of the risk associated with the dam.

Vale has consistently said the collapsed dam was declared sound by an independent auditor in September.

The audit by Germany-based TÜV SÜD, which was seen by Reuters, said the dam adhered to the minimum legal requirements for stability but it raised a number of concerns, particularly about the dam’s drainage and monitoring systems.

The auditor made 17 recommendations to improve the dam’s safety.

Vale said the recommendations were routine and that the company attended to them all.

Its internal report identified static liquefaction and internal erosion as the most likely causes of a potential failure at the dam in Brumadinho.

‘Liquefaction’ to blame?

It is still not known what was behind the collapse, but a state environmental official told Reuters this month that all evidence pointed to liquefaction.

Liquefaction is a process whereby a solid material such as sand loses strength and stiffness and behaves more like a liquid. It was the cause of the 2015 dam collapse, at a nearby mine co-owned by Vale, which resulted in Brazil’s worst-ever environmental disaster.

“We used to say these kinds of mining incidents were acts of God, but now … we consider them failures in engineering,” said Dermot Ross-Brown, a mining industry engineer who teaches at the Colorado School of Mines.

Vale has said it will invest some $400 million from 2020 to reduce its reliance on tailings dams, which store muddy detritus from mining.
…

U.S. Secretary of State Mike Pompeo is warning Hungary the presence of Chinese telecommunication manufacturer Huawei in the European country is complicating Budapest’s partnership with Washington. 

The chief American diplomat Monday arrived in Budapest on Monday, the first leg of his European trip. Huawei has established Hungary as a European hub, where it can develop its fifth-generation mobile networks.

“If that equipment is co-located in places where we have important American systems, it makes it more difficult for us to partner alongside them. We want to make sure we identify [to] them the opportunities and the risks associated with using that equipment,” said Pompeo.

While noting sovereign nations such as Hungary will “make their own decisions,” Pompeo said it’s imperative the United States shares potential risks from Huawei with its NATO allies.

American officials are increasingly troubled by Huawei’s expansion in Europe, especially in NATO member states where Washington believes the Chinese telecom manufacturer poses significant information security threats.

At a joint press conference with Hungarian Foreign minister Peter Szijjarto, Pompeo said he has raised with Szijjarto “the dangers of allowing China to gain a bridgehead in Hungary.”

But the U.S. pressure campaign against Huawei faces challenges. Hungary has said it has no plans to reconsider the decision to award the 5G networks contract to Huawei. 

Many in China believe that the U.S. government concerns over Huawei’s security are at least in part aimed at helping American companies better compete against foreign rivals. But U.S. officials reject that notion.

“That sounds like a lot of mirror imaging to me,” said U.S. Assistant Secretary of State for International Security and Nonproliferation Christopher Ford in an interview with VOA, noting “the Chinese government has actually been extraordinarily grand in its ambitions to do just that sort of thing with Chinese companies.”

Ford pointed to numerous public reports in recent years that have blamed Chinese government-backed hackers with cyber campaigns stealing corporate secrets and financial data. 

“Cyber-facilitated theft of intellectual property, for example, has become notorious around the world. But the Chinese government has been doing that very systematically in order to advantage its own national champion industries in particular sectors,” Ford added.

Social media threats?

Weary of data collection and Chinese technology transfer for military purposes, the U.S. government is considering tighter restrictions on the use of social media apps that have geolocation features within diplomatic and military facilities.

While the State Department does not expressly prohibit the use of commercial geolocation applications on smartphones and other personal electronic devices by employees serving internationally, measures are taken to address the potential security risks.

The State Department has issued guidance requiring each post to develop a policy regarding the restrictions placed on using personal electronic devices.

“We obviously need to continue to be mindful of that, and to update and improve our understanding of best practices,” said Assistant Secretary of State Ford.

Last year, the Pentagon started prohibiting personnel from using geolocation features on electronic devices while in locations designated as operational areas.

Those restrictions could impact popular social media applications like TikTok, a Chinese-made app for sharing short videos that is popular among young adults.

All social media companies gather data on their users, but experts warn that Chinese companies in particular pose unique challenges because the Beijing government has absolute authority to request private user data. 

“The user in Western countries might not be aware that in China, the government has a far broader reach compared to over here, so they can request data out from a private company on national security grounds,” Claudia Biancotti, visiting fellow at the Peterson Institute for International Economics (PIIE), told VOA in a recent interview.

Biancotti added in China, “they don’t really have independent courts to oversee the process.”

“If this information is sent to China, it can be easily accessed by the government and leveraged, say, to make Beijing’s surveillance software better at recognizing Western faces, or at extracting intelligence on Western military activities,” warned Biancotti in a recent report.

TikTok, launched as Douyin in China in 2016, is owned by Chinese internet technology company ByteDance who later acquired Musical.ly, a popular lip-sync app among American teenagers. ByteDance merged Musical.ly with TikTok in 2018 as a means of entering the U.S. market. 

Last October, TikTok surpassed Facebook, Instagram, YouTube and Snapchat in monthly installations. 

TikTok recently updated its privacy policy for U.S. residents, removing all references about storing data in China. 

Last August, TikTok stated in the privacy policy: “We will also share your information with any member or affiliate of our group, in China,” but the latest update in January of 2019 deleted the word “China.”

The company wrote an email to VOA’s Mandarin service that they regularly update their privacy policies while noting that TikTok does not operate in China.

TikTok’s current privacy policy stated it automatically collects technically and behavioral information from users, including IP address, location-related data or other unique device identifiers. 

“We may also collect Global Positioning System (GPS) data and mobile device location information.” But users can switch off location information functionality on their mobile device if they do not wish to share such data.

“We will share your information with law enforcement agencies, public authorities or other organizations if legally required to do so,” TikTok stated. 

VOA’s Mandarin Service, Jeff Seldin and Mo Yu contributed to this report.
…

International Monetary Fund chief Christine Lagarde on Sunday met Pakistani Prime Minister Imran Khan and assured him that IMF stands ready to support his country.

The meeting took place on the sidelines of the World Government Summit in Dubai, hosted by the United Arab Emirates, both IMF and prime minister Imran Khan’s office said.

“I reiterated that the IMF stands ready to support Pakistan,” Lagarde said in a statement following meeting Khan.

A team from the International Monetary Fund visited Pakistan in November to discuss a possible bailout with officials, though the talks ended without agreement, but since then the government official said talks were still ongoing on a possible bailout.

Pakistan — which has gone to the IMF repeatedly since the late 1980s — is facing a balance of payments crisis.

“I also highlighted that decisive policies and a strong package of economic reforms would enable Pakistan to restore the resilience of its economy and lay the foundations for stronger and more inclusive growth,” said Lagarde, calling the meeting “good and constructive”.

Pakistan — a regular borrower from the IMF since the 1980s — last received an IMF bailout in 2013 to the tune of $6.6 billion.

Forecasts by the IMF and World Bank suggest the Pakistani economy is likely to grow between 4.0 and 4.5 percent for the fiscal year ending June 2019, compared to 5.8 percent growth in the last fiscal year.

Addressing the World Government Summit, prime minister Khan said his government has started a reform program and was trying to improve its economic policies.

“Reforms are painful but it is essential if we have to get out of our current problems,” Khan told the summit and said his government was making efforts to cut down the fiscal and current account deficit.

Khan hoped that the time has come that “Pakistan will take off”.

Khan has launched a highly publicized austerity drive since being sworn in, including auctioning off government-owned luxury vehicles and buffaloes, in addition to seeking loans from “friendly countries” and making overtures to the IMF.

The United Arab Emirates, Pakistan’s largest trading partner in the Middle East and a major investment sources, recently offered $3 billion to support Pakistan’s battered economy.

Islamabad also secured $6 billion in funding from Saudi Arabia and struck a 12-month deal for a cash lifeline during Khan’s visit to the kingdom in October.

It has also received billions of dollars in Chinese loans to finance ambitious infrastructure projects.

Despite the pledges, the ministry of finance said Pakistan would still seek broader IMF support for the government’s long-term economic planning.

In January, Pakistan launched a new investment certificate for overseas citizens, aimed at easing the country’s balance of payments crisis.

 
…

A joint study by the International Labor Organization and U.N. Children’s Fund finds the vast majority of the world’s children lack effective social protection coverage. It says this dooms them to a life of extreme poverty, with negative implications for society.

The study finds only one third of children between zero and 14 years of age have any social protection. That means two-thirds, or 1.3 billion children live without a social safety net.

International Labor Organization Social Protection Department Director Isabel Ortiz says just slightly more than one percent of GDP is allocated to social protection for children. She says this huge under-investment gap needs to be covered.

“And, of course, the numbers worsen as we go by region. In Africa, for instance, children represent 40 percent of the African population overall. However, only 0.6 percent is actually invested in social protection for children,” she said.

The report finds children fare best in Europe and Central Asia where 87 percent have social protection coverage, followed by children in the Americas with 66 percent. Asia and Africa have the worst records. The report says no data is available on the Arab States.

The report highlights the impact extreme poverty has upon the lives of children and the societies in which they live. Chief of the U.N. Children’s Fund Child Poverty and Social Protection Unit, David Stewart, says 385 million children are living on under $1.90 a day.

“I think one of the most striking statistics, which emerges is that children are two times as likely to be living in poverty as adults,” he said. “Now, for children it is particularly concerning because poverty can have a lifetime implication for children. You do not have a second chance at nutrition, at health care, and education.”

Stewart says this has negative implications for children, and for societies and economies as well.

The ILO and UNICEF recommend the rapid expansion of social protection for children including the consideration of universal cash grants to children. Authors of the report say evidence clearly shows cash transfers play a vital role in breaking the vicious cycle of poverty and vulnerability.

 
…

A portion of TransCanada Corp’s Keystone oil pipeline remained shut on Thursday for investigation of a possible leak on its right-of-way near St. Louis, Missouri, a company spokesman said.

TransCanada shut the pipeline on Wednesday between Steele City, Nebraska and Patoka, Illinois and sent crews to assess the situation, spokesman Terry Cunha said in an email.

The 590,000 barrels-per-day Keystone pipeline is a critical artery taking Canadian crude from northern Alberta to U.S. refineries.

Two pipelines operating near the release site will be excavated on Friday to determine the source of the leak, said Darius Kirkwood, a spokesman for the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration. The agency is monitoring the response to the reported leak, he said.

Canadian pipelines are already congested because of expanding production in recent years, forcing the Alberta provincial government to order production cuts starting last month. Canadian heavy oil has attracted greater demand following U.S. sanctions against Venezuela’s state oil company.

The discount on Canadian heavy crude compared to U.S. light oil widened to $10.15 per barrel on Thursday morning from $9.40 earlier, according to Net Energy Exchange.

TransCanada shares eased 0.2 percent to C$55.98 in Toronto.

An official with the Missouri Department of Natural Resources said on Wednesday that the release of oil had stopped and it planned to find the leak on Thursday.

The Missouri Department of Natural Resources did not immediately respond to a request for comment on Thursday.

 
…

Twitter said Thursday profits rose sharply in the fourth quarter, lifted by gains in advertising despite a drop in its global user base.

The short-messaging platform said it posted a $255 million profit in the final three months of 2018, compared with $91 million a year earlier, as revenues rose 24 percent to $909 million.

But Twitter’s base of monthly active users declined to 321 million — a drop of nine million from a year earlier and five million from the prior quarter.

Twitter said it would stop using the monthly user base metric and instead report “monetizable” daily active users in the US and worldwide.

Using that measure, Twitter showed a base of 126 million worldwide, up nine percent over the year.

“2018 is proof that our long-term strategy is working,” said chief executive Jack Dorsey.

“Our efforts to improve health have delivered important results, and new product features like a single switch to move between latest and most relevant tweets have been embraced by the people who use Twitter. We enter this year confident that we will continue to deliver strong performance by focusing on making Twitter a healthier and more conversational service.”

Twitter shares sputtered and then fell sharply after the report, dropping as much as eight percent in pre-market trade.

Jasmine Enberg of the research firm eMarketer said the earnings were nonetheless positive.

“Twitter’s Q4 earnings prove that the company is still able to grow its revenues without increasing its user base,” she said.

“The falloff in monthly active users is likely a continuation of Twitter’s efforts to remove questionable accounts.”

Twitter, which has struggled to keep up with fast-growing rivals like Facebook and Instagram, said it changed the measure for its user base to reflect “our goal of delivering value to people on Twitter every day and monetizing that usage.”

 
…

Fiat Chrysler Automobiles NV and Robert Bosch have agreed to pay lawyers representing owners of U.S. diesel vehicles $66 million in fees and costs, according to court filing on Wednesday and people briefed on the matter.

In a court filing late on Wednesday in U.S. District Court in San Francisco, lawyer Elizabeth Cabraser said after negotiations overseen by court-appointed settlement master Ken Feinberg, the companies agreed not to oppose an award of $59 million in attorney’s fees and $7 million in costs.

The lawyers had originally sought up to $106.5 million in fees and costs.

Under a settlement announced last month, Fiat Chrysler and Bosch, which provided emissions control software for the Fiat Chrysler vehicles, will give 104,000 diesel owners up to $307.5 million or about $2,800 per vehicle for diesel software updates.

The legal fees are on top of those costs. Fiat Chrysler and Bosch did not immediately comment late Wednesday.

Fiat Chrysler is paying up to $280 million, or 90 percent of the settlement costs, and Bosch is paying $27.5 million, or 10 percent. The companies are expected to divide the attorney costs under the same formula, meaning Fiat Chrysler will pay $60 million and Bosch $6 million, the people briefed on the settlement said.

U.S. District Judge Edward Chen must still approve the legal fees. He has set a May 3 hearing on a motion to grant final approval.

The Italian-American automaker on Jan. 10 announced it settled with the U.S. Justice Department, California and diesel owners over civil claims that it used illegal software that produced false results on diesel-emissions tests.

Fiat Chrysler previously estimated the value of the settlements at about $800 million.

Fiat Chrysler is also paying $311 million in total civil penalties and issuing extended warranties worth $105 million, among other costs.

The settlement covers 104,000 Ram 1500 and Jeep Grand Cherokee diesels from the model years 2014 to 2016. In addition, Fiat Chrysler will pay $72.5 million for state civil penalties and $33.5 million to California to offset excess emissions and consumer claims.

The hefty penalty was the latest fallout from the U.S. government’s stepped-up enforcement of vehicle emissions rules after Volkswagen AG admitted in September 2015 to intentionally evading emissions rules.

The Justice Department has a pending criminal investigation against Fiat Chrysler.
…

President Donald Trump says Treasury Department official David Malpass is his choice to lead the World Bank.

Trump introduced Malpass on Wednesday as the “right person to take on this incredibly important job.” Malpass is a sharp critic of the 189-nation lending institution.

Malpass says he’s honored by the nomination. He says a key goal will be to implement changes to the bank that he and Treasury Secretary Steven Mnuchin helped negotiate, and to ensure that women achieve full participation in developing economies.

Malpass would succeed Jim Yong Kim, who departed in January three years before his term was to end.

Other candidates will likely be nominated for the post by the bank’s member countries. A final decision on a new president will be up to the bank’s board.
…

Treasury Secretary Steven Mnuchin said Wednesday that President Donald Trump had a “quite productive” dinner with Federal Reserve Chairman Jerome Powell. He says they discussed a wide range of subjects, from the state of the economy to the Super Bowl and Tiger Woods’ golf game.

Talking to reporters at the White House, Mnuchin said that Trump was very engaged during the casual dinner Monday night. It took place in the White House residence and marked the first time Powell and Trump have met since Powell took office as Fed chairman a year ago.

Mnuchin said that Powell’s comments were consistent with what he has been saying publicly about the economy. The Fed said in a statement that Powell did not discuss the future course of interest rates.

 
…

No matter who wins Algeria’s presidential election, 29-year-old cardiologist Moumen Mohamed plans to seek his fortune elsewhere.

He is one of a growing number of young, educated Algerians who are looking for work in Europe or the Gulf to escape the low salaries imposed by a state-dominated economy at home.

The exodus of doctors, engineers and other highly skilled workers is a headache for a government hoping to engage with its largely youthful electorate ahead of the vote on April 18.

President Abdelaziz Bouteflika, 81, has not said if he will seek a fifth term, although the ruling FLN party, labor unions and business leaders are urging him on.

For young professionals, the question is scarcely relevant.

Many feel disconnected from an elite populated by the veterans of Algeria’s 1954-1962 war of independence from France, an era they only know about from their grandparents.

They want to pursue their careers but feel discouraged by a system that offers low-paid jobs and little opportunity to better themselves.

“I have already done my paperwork to migrate,” said Moumen, the cardiologist, who works at a state hospital. “I am waiting for a response.”

Nearly 15,000 Algerian doctors work in France now and 4,000 submitted applications to leave their home country last year, according to official figures.

The government does not accept all the blame.

“The press has exaggerated the phenomenon… it is a problem for all Algerians, not just the government,” Prime Minister Ahmed Ouyahia said in response to a reporter’s question about young doctors leaving.

But in Europe doctors can earn ten times what they get in Algeria, a socialist economy where medical professionals are paid little more than less skilled public employees.

“Salaries, working conditions are bad, and above all there is no appreciation of doctors,” said Mohamed Yousfi, head of the specialist doctors’ union.

“Our doctors are filling the medical desert in Western countries like France, Canada and Germany. They are also present in the Gulf,” said Yousfi, sitting in his office in the public hospital at Boufarik, a town near Algiers.

The hospital, which opened in 1872, was being refurbished by building workers, and Yousfi said medical equipment was readily available.

“The authorities focus on walls and equipment but forget human resources,” he said.

Public sector

Algeria has poured billions of dollars in the health sector in the past decades, with around 50,000 doctors and 150,000 beds available in 2018, official data shows.

The North African oil and gas producing nation guarantees citizens cradle-to-grave welfare, but lack of competition from the private sector means some services are poor.

The country only ranks 85 out of 189 in the Human Development Index of living standards compiled by the United Nations Development Program. This is behind Western and Eastern Europe, the Gulf and even sanctions-hit Iran.

Many public hospitals do not offer the same level of quality as private clinics, which have been slowly opening. Those who can afford it go abroad for treatment.

“We are not respected as we should be as long as our dignitaries, ministers and generals continue to seek treatment overseas,” said a doctor who asked not to be named.

Doctors are not the only ones who want to migrate. Pilots, computer engineers, oil drillers and even journalists are also heading for the airport, privately owned Algerian media report.

Around 10,000 engineers and drillers from the state energy firm Sonatrach have left the company in the past ten years, according to senior company officials. “If nothing is done to improve working conditions and salaries, more and more will leave,” a Sonatrach source said.

Most professionals head for the Gulf, where they earn good salaries.

“I left Algeria in 2015. I am a computer engineer and I am now in Oman working for a big telecoms firm,” Messaoud Benali, 39, said by phone.

“I know plenty of educated Algerians who work in Gulf countries,” he said.

Bouteflika must say whether he will run or not by March 3, according to the constitution.

If he does, he is expected to win despite his poor health, because the opposition remains weak and fragmented, analysts say. But how the ruling elite can connect with young people is another question altogether.

Algeria has one of the world’s slowest internet speeds, but its young people are still very tech-savvy.

This became clear when 21-year-old singer Farouk Boujemline invited fans via Snapchat to celebrate his birthday in the center of Algiers.

About 10,000 showed up, jamming the traffic for hours, and police had to set up barriers around the city’s independence monument to make sure the party didn’t get out of control.

By contrast, Bouteflika, Prime Minister Ouyahia and several other ministers do not have Twitter accounts to communicate with the public.

Algeria is one of the few countries where government ministries still use fax machines to communicate with the outside world.

“How to reconnect with the young elite, this is the top priority for Algeria’s next president,” said political analyst Ferrahi Farid.

In the past, authorities could ensure public support by increasing salaries or extending the welfare state.

When riots erupted in Algiers in 2011, the government sought to prevent any spread of the Arab Spring uprisings by offering billions to pay for salary increases, interest-free loans, and thousands of jobs in the public sector.

But 95 percent of government income depends on oil and gas revenues, which halved in the years from 2014 to 2017, forcing officials to impose a public hiring freeze.

“When the oil price is $100 you can do a lot, but when it is $50 there is not much you can do,” Farid said.

 
…

Rwanda said on Tuesday it had signed a $400 million deal to produce bottled gas from Lake Kivu, which emits such dense clouds of methane it is known as one of Africa’s “Killer Lakes.”

The project by Gasmeth Energy, owned by U.S. and Nigerian businessmen and Rwandans, would suck gas from the lake’s deep floor and bottle it for use as fuel. This should, in turn, help prevent toxic gas bubbling to the surface.

The seven-year deal, signed on Friday, was announced on Tuesday.

Rwanda already has two companies that extract gas from Lake Kivu to power electricity plants.

Clare Akamanzi, chief executive of the Rwanda Development Board, told Reuters bottled methane would help cut local reliance on wood and charcoal, the fuels most households and tea factories use in the East African nation of 12 million people.

“We expect to have affordable gas which is environmentally friendly,” she said. “We expect that people can use gas instead of charcoal, the same with industries like tea factories instead of using firewood, they use gas. It’s part of our green agenda.”

The deep waters of Lake Kivu, which lies in the volcanic region on Rwanda’s border with the Democratic Republic of Congo, emit such dense clouds of methane that scientists fear they might erupt, killing those living along its shore.

Eruptions from much smaller methane-emitting lakes in Cameroon, one causing a toxic cloud and another sparking an explosion, killed a total of nearly 1,800 people. The shores of Lake Kivu are much more densely populated.

Gasmeth Energy said it would finance, build and maintain a gas extraction, processing and compression plant to sell methane domestically and abroad.

The bottled gas should be on sale within two years, Akamanzi said, adding that prices had yet to be determined.
…

When he was younger, the only thing that Enrique Morales knew about marijuana was that you smoked it to get high.

Today, the former driver is a horticulturist on a cannabis plantation about 80 miles (130 kilometers) west of the Uruguayan capital of Montevideo and he says drops of marijuana oil have been key to treating his mother’s osteoarthritis.

“My perception has now changed. It is a plant that has a lot of properties!” he said.

The company that owns the plantation, Fotmer SA, is now part of a flourishing and growing medical cannabis industry in Uruguay.

The country got a head start on competitors in December 2013 when it became the first in the world to regulate the cannabis market from growing to purchase, a move that has brought a wave of investment.

For Uruguayan citizens or legal residents over 18 years old, the law allows the recreational use, personal cultivation and sale in pharmacies of marijuana through a government-run permit system, and officials later legalized the use and export of medical marijuana to countries where it is legal.

No company has yet begun large-scale export operations, but many say selling medical cannabis oil beyond the local market of 3.3 million inhabitants is key to staying ahead of the tide and transforming Uruguay into a medical cannabis leader along with the Netherlands, Canada and Israel.

“The Latin American market is poorly supplied and is growing,” said Chuck Smith, chief operating officer of Denver, Colorado-based Dixie Brands, which recently formed a partnership with Khiron Life Sciences, a Toronto company that has agreed to acquire Dormul SA, which has a Uruguayan license to produce medical cannabis.

“Uruguay is taking a leadership position in growing high CBD, high value hemp products. So we see that as a great opportunity from a supply chain perspective,” he said, referring to the non-psychoactive cannabidiols that are used in medical products.

Khiron has said it should be able to export medical marijuana from Uruguay to southern Brazil under regulations of the Mercosur trade bloc, marking a milestone for Uruguayan marijuana companies focused on exports.

Fotmer, based in the small town of Nueva Helvecia, also currently employs 80 people and is investing $7 million in laboratories and 10 tons of crops that it hopes to ship to countries including Germany and Canada, which is struggling to overcome supply shortages in its cannabis market.

Fotmer s 35,000 marijuana plants are sheltered in 18 large greenhouses measuring 12.5 meters by 100 meters (41 feet by 328 feet), where workers such as Morales change into special clothing, wash their hands with alcohol and wear gloves and surgical masks to avoid any contamination.

Helena Gonzalez, head of quality control, research and development for Fotmer, said the precautions are important in producing a quality product that can be used in medical research into the effects of cannabis products.

“Aiding that research is another of our objectives,” she said.

The first crop of prized flowers will be harvested for their cannabis oil in March.

The oil containing THC and CBD will be extracted in its labs to eventually manufacture pills, creams, ointments, patches and other treatments for cases of epilepsy and chronic pain, among other ills.

Competition is arriving as well. In December, Uruguayan President Tabare Vazquez inaugurated a $12 million laboratory owned by Canada s International Cannabis Corp., which aims to produce and export medicine from hemp, a variety of cannabis that contains CBDs but has no psychoactive effects.

Despite the momentum, experts say there is one key problem: Countries including Ecuador, Cuba, Panama, El Salvador and Guatemala continue to prohibit both the recreational and medicinal use of marijuana and exports of cannabis products are subject to a complex web of international regulations that is still being developed.

Marcos Baudean, a member of Monitor Cannabis at the University of the Republic of Uruguay, says another difficulty is that the South American country is competing for market share. He said cannabis exports give the country a chance to expand beyond its traditional exports of raw materials into more sophisticated products involving science and biology.

Diego Olivera, head of Uruguay s National Drug Secretariat, said Uruguay s comprehensive cannabis law, along with its strong rule of law and transparent institutions, gives it a head start.

“Uruguay today has a dynamism in the cannabis industry that is very difficult to find in other sectors,” he said.
…

Taxi-drivers in the Spanish capital seeking tighter regulation of Uber and other ride-hailing services called off their indefinite strike on Tuesday after 16 days during which they obtained no concessions from the Madrid regional government.

Madrid’s refusal to accept drivers’ demands came after ride-hailing companies Uber and Cabify said last week they were suspending their services in Barcelona in response to the regional government’s imposition of limits on how they operate in the city.

Union representatives in Madrid said the strike had demonstrated the unity and power of the drivers, which would help them continue the fight for their demands.

“It is a long war, in which you can lose battles, but in the end I’m sure we can win,” Julio Sanz, head of the Taxi Federation union, told reporters.

The city’s taxi drivers started the protests on Jan. 20 against the private services, which offer rides that often undercut taxi prices and can be hailed via the internet rather than in the street.

Last week, riot police backed by a fleet of tow trucks had to clear hundreds of vehicles blocking the capital’s Paseo de la Castellana thoroughfare.

In September, Spain’s government gave ride-hailing companies four years to comply with regulation granting them just one new licence for every 30 taxi licences. The cab drivers are demanding stricter regulations now.

Following protests by Barcelona taxi-drivers, the Catalan government had ruled that ride-hailing services could only pick up passengers after a 15-minute delay from the time they were booked.
…

Negotiating new World Trade Organization rules to try to rein in China’s “mercantilist” trade practices would be largely a futile exercise, the Trump administration’s trade office said on Monday, vowing to pursue its unilateral approach to protect U.S. workers, farmers and businesses.

The U.S. Trade Representative’s office used its annual report to Congress on China’s WTO compliance in part to justify its actions in a six-month trade war with Beijing aimed at forcing changes in China’s economic model.

The report also reflects the United States’ continued frustration with the WTO’s inability to curb what it sees as China’s trade-distorting non-market economic policies, and offered little hope that situation could change soon.

“It is unrealistic to expect success in any negotiation of new WTO rules that would restrict China’s current approach to the economy and trade in a meaningful way,” the USTR said in the report.

Some U.S. allies, including Canada, the European Union and Japan, which are also frustrated with pressures created by China’s economic policies, have begun talks on the first potential changes and modernization of WTO rules since it was founded in 1995.

But any WTO rule changes must be agreed by all 164 member nations, and past efforts have stalled. It was “highly unlikely” China would agree to new disciplines targeting changes to its trade practices and economic system, the USTR said.

Tariff deadline

The report shed little light on progress in talks between the United States and China to ease a bruising tariff fight, despite a swiftly approaching March 2 deadline to hike U.S. tariffs to 25 percent from 10 percent on $200 billion worth of Chinese goods imports.

The WTO report follows two days of intense talks between high-level U.S. and Chinese officials last week centered on U.S. demands for structural policy changes. These include enforcing intellectual property protections, ending cyber theft of trade secrets, halting the forced transfers of American technology to Chinese firms and reining in industrial subsidies.

While U.S. President Donald Trump said he would like to meet Chinese President Xi Jinping to try to hammer out a trade deal, the USTR report makes clear a massive amount of work will be needed to bridge the gulf between the two countries.

It cited the key structural issues in the talks, which also include China’s new cybersecurity law and discriminatory regulatory practices, as examples of how China aids domestic firms at the expense of foreign competitors in ways that escape WTO rules, adding that China has become “a unique and pressing problem for the WTO and the multilateral trading system.”

The criticism also comes as the United States weakens the WTO’s role as global commerce watchdog by blocking the appointments of judges to its appellate body, which may no longer be able to function by December, when two judges step down.

‘Holding China accountable’

USTR said the United States intends to “hold China accountable” for adhering to existing WTO rules and “any unfair and market-distorting trade practices that hurt U.S. workers, businesses, farmers or ranchers.”

“Until China transforms its approach to the economy and trade, the United States will take all appropriate actions to ensure that the costs of China’s non-market economic system are borne by China, not by the United States,” USTR said.

The agency reiterated a broad array of concerns over China’s key structural issues, such as its 2025 plan for investment in particular sectors and its failure to follow market-oriented principles expected of WTO members, the report said.

“China retains its non-market economic structure and its state-led, mercantilist approach to trade, to the detriment of its trading partners,” it said.
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Brazil’s government has opened discussions with congressional leaders, state governors and mayors on a pension reform bill that would set the minimum retirement age for men and women at 65, a government official said on Monday.

The proposal is one of several under consideration, as President Jair Bolsonaro looks to get the legislative ball rolling on his ambitious plans to overhaul Brazil’s creaking social security system.

Currently, if workers have contributed into the system for at least 15 years, the earliest men can retire is 65 and for women it is 60. But men can retire at any age if they have paid into the system for at least 35 years, and women if they have contributed for 30 years.

Speaking to reporters outside the Economy Ministry in Brasilia, Rogerio Marinho, secretary of social security and labor at the ministry, confirmed talks were underway on the proposal to change that.

Part of the proposal, which was originally reported by O Estado de Sao Paulo newspaper, stipulates that workers must pay into the system for a minimum of 20 years.

“Until a draft has been finalized, Bolsonaro cannot confirm anything on social security,” Bolsonaro’s spokesman Otavio Rego Barros said on Monday.

Bolsonaro has put overhauling social security at the top of his agenda. Depending on the final proposals, it could save up to 1.3 trillion reais ($354 billion) over the next decade, economy ministry sources reckon.

Investors have pinned much of their optimistic outlook for Brazil this year on Bolsonaro delivering on pension reform. The elections of Bolsonaro allies as house and senate presidents last week were seen as a step in that direction.

The Bovespa stock market hit a record high on Monday above 98,500 points, and the real has risen around 7 percent against the dollar in the last six weeks.

($1 = 3.6707 reais)
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British lawmakers are debating new proposals on the European Union Withdrawal Agreement this week, amid a series of stark warnings over the consequences of Britain crashing out with no deal on 29 March.

Prime Minister Theresa May hopes to negotiate changes to the Withdrawal Agreement in meetings with Brussels in the coming days, after a majority of British MPs backed calls to change the deal last week. The European Union has flatly rejected reopening the talks.

There are growing signs that uncertainty over Brexit is starting to hit investment, as Japanese car giant Nissan has announced Sunday it is moving production of the X-trail — one of its most popular SUV models — out of the UK. The decision reverses a pledge made by Nissan in the wake of the 2016 referendum.

It’s emerged that Britain offered Nissan over $100 million in 2016 to persuade it to keep its operations in the UK. The reversal was met with dismay by British lawmakers.

‘”It concerns me that they have noted the uncertainty around Brexit and I think that is a serious signal to all of us in Parliament, that now is the time to resolve that uncertainty,” Business Minister Greg Clark told reporters Sunday.

As Britain’s ties stumble, Japan and the European Union are celebrating the entry into force of a trade deal, covering a third of global GDP. Visiting Tokyo Monday, German Chancellor Angela Merkel said a Brexit deal was still possible.

“But we need to know from Britain — and this is the critical point — what it envisages,” Merkel said in a press conference.

The threat of a no deal Brexit is growing starker by the day. Government contingency plans leaked to British media purportedly entail evacuating the Royal Family from Buckingham Palace. Worst-case scenarios envisage rioting on the streets amid food and medicine shortages, as waste export restrictions create mountains of garbage.

Alberto Alemanno, a professor of EU Law at HEC Paris, says neither Britain nor Europe can accurately predict the consequences of a no-deal exit.

“Obviously it’s a very complicated scenario, which entails incredible implications for citizens, for businesses on both sides of the Channel. But the other option is to rethink the Withdrawal Agreement. But not entirely — it’s just about arranging the process that might lead the Withdrawal Agreement to finally find a majority in the Houses [of Parliament].”

That might not be enough. Britain is demanding changes to the so-called “Irish backstop” clause, which seeks to keep Britain tied to EU rules until a trade deal is in place — aimed at preventing a hard border between the Irish Republic and Northern Ireland, which will become the EU’s external border.

But the EU is unlikely to budge, says analyst Anand Menon of the UK in a Changing Europe program at Kings College London.

“They won’t give us a time-limited backstop, because as the Irish keep staying, if it’s time-limited it’s not a backstop,” said Menon.

Reopening the Withdrawal Agreement could see other EU member states request their own changes, notably Spain’s demands for talks on the sovereignty of Gibraltar.

“Some member states could have some possible claims, certainly Spain might be one of them. But also the political context in Europe is also moving, and very fast, ahead of the next European elections,” notes Professor Alemmano.

It is a reminder that the current deadlock is just the beginning of Britain’s recasting its relationship with a fast-changing Europe — a process that could take years, if not decades.
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With Brexit just seven weeks away, Britain’s ruling Conservative Party was locked in tense negotiations with itself Monday to rework the U.K.’s divorce deal with the European Union — as the EU stood firm in ruling out any renegotiation.

Meanwhile, pro-EU and pro-Brexit U.K. politicians traded allegations about whether Nissan’s decision not to build a new SUV in northern England was the latest Brexit-induced damage to Britain’s economy.

Prime Minister Theresa May was gathering pro-Brexit and pro-EU Conservative lawmakers into an “alternative arrangements working group” seeking to break Britain’s Brexit deadlock.

The group is holding three days of meetings with ministers and civil servants to investigate possible changes to the EU divorce deal, which was rejected by Parliament last month.

The changes center on replacing a measure known as the backstop, designed to keep an open border between the United Kingdom’s Northern Ireland and EU member state Ireland.

The border area was a flashpoint during decades of conflict in Northern Ireland that cost 3,700 lives. The free flow of people and goods across the near-invisible frontier now underpins both the local economy and Northern Ireland’s peace process.

The EU insists the Brexit withdrawal agreement can’t be renegotiated, and has already rejected some of the arrangements under discussion in London, including a time limit on the backstop and unspecified technological solutions to customs checks.

German Chancellor Angela Merkel said Monday the already-agreed Brexit withdrawal agreement could not be renegotiated, although questions surrounding border arrangements could be addressed in a declaration on the future relationship between the EU and Britain.

Speaking during a trip to Japan, she said a Brexit agreement was still possible, but first  “we must hear from Great Britain how they envision that.”

May has not spoken to EU leaders since Wednesday, a day after British lawmakers instructed her to seek changes to the Brexit withdrawal agreement she had spent a year and a half negotiating with Brussels.

But May’s spokesman, James Slack, denied that the Brexit process was deadlocked. He said the government was working with “urgency” on border solutions.

“What we are doing right now is working at home on the proposal we will take to Brussels,” he said.

Britain is due to leave the bloc on March 29, and the government doesn’t have an approved agreement on the rules and conditions that will replace the 45 years of frictionless trade that came with being an EU member.

Many businesses fear a cliff-edge “no-deal” departure from the EU will cause economic chaos. The uncertainty has already led many firms to shift some operations abroad, stockpile goods or defer investment decisions.

Over the weekend, Japan’s Nissan said it had decided not to build the X-Trail model at its existing U.K. plant in Sunderland, England, canceling plans announced two years ago after May’s government made undisclosed concessions designed to ensure the carmaker’s ability to compete after Brexit.

The company said it instead plans to consolidate production of the next generation X-Trail at its plant in Kyushu, Japan, where the model is currently produced. It will continue producing three other models at the Sunderland plant, which employs 7,000 people.

The company said it had made the decision “for business reasons,” but added that “the continued uncertainty around the U.K.’s future relationship with the EU is not helping companies like ours to plan for the future.”

Pro-Brexit British politicians insisted the decision was motivated largely by falling sales of diesel vehicles in Europe, rather than by Brexit.

But U.K. Business Secretary Greg Clark told the Financial Times that Nissan’s decision was “a warning sign.”

He said senior Nissan managers had told him that a no-deal Brexit would “cast a shadow over their future in Britain.”
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The growing use of mobile phones, computers, and televisions in Africa has left the continent with huge amounts of electronic waste. According to the United Nations Environment Program, 40 percent of the world’s electronic dumpsites are found in Africa. To reduce the growing problem, a group in Kenya is helping manage E-waste through local and exported recycling. Mohammed Yusuf reports from Nairobi.
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Finding a comfortable working environment can sometimes be difficult, especially for women working in male-dominated fields like science and technology. But some new startups are all about creating spaces that cater to and are dominated by women. VOA’s Kevin Enochs reports.
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The most recent round of trade talks between the United States and China concluded in Washington this week with no firm deal other than a commitment to keep talking. Nike Ching reports on the status of the talks between the world’s leading economies, as they try to find common ground before more America tariffs come online in early March.
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Although they can afford to purchase a home, more well-to-do Americans are choosing to rent instead.

The number of U.S. households earning at least $150,000 annually that chose to rent rather than buy skyrocketed 175 percent between 2007 and 2017, according to an analysis by apartment search website RentCafe, which used data from the Census Bureau to reach its conclusions.

This new breed of renters challenges long-held assumptions that Americans rent a place to live primarily because they can’t afford to buy a home.

“Lifestyle plays an important part in their decision to rent,” study author Alexandra Ciuntu told VOA via email. “Renting in multiple cities at once has its perks, and so does changing one trendy location after another.”

Business and technology hubs like San Francisco and Seattle have the highest numbers of wealthy renters.

“Given the escalating house prices, it seems like a verifiable better decision to go with renting for longer,” Ciuntu said. “Given that in San Francisco, for example, $200,000 buys you just 260 square feet, it’s understandable why top-earners give renting a serious try before deciding whether to invest in a property or not.”

In fact, in both San Francisco and New York, wealthy renters outnumber well-to-do buyers. There are more high-earning renters — 250,000 — in New York City that anywhere else in the country.

“Ten years ago we would have associated real estate equity with life stability, whereas the two are not necessarily interrelated nowadays,” Ciuntu said. “Renting proves to be a more flexible option for those enjoying a dynamic and rich lifestyle. From a more millennial standpoint, this is no longer a brief solution before settling down, but rather an attractive world of possibilities.”

However, this rental enthusiasm doesn’t mean folks in the wealthiest brackets are rejecting homeownership, according to Ciuntu. Between 2007 and 2017, Chicago added 9,800 more wealthy owners than high-income renters, Seattle gained 13,400, and Denver added almost 18,000 more well-to do earners than wealthy renters.
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U.S. employers likely kept adding jobs at a healthy pace in January even in the face of threats ranging from weakening global growth to the Trump administration’s trade war with China to the partial shutdown of the government.

On Friday, the Labor Department will issue the monthly employment report, the first major economic report to cover most of the 35-day shutdown period that ended a week ago.

Economists have forecast that employers added 165,000 jobs and that the unemployment rate remained at a low 3.9 percent, according to data provider FactSet. The predicted job gain would be a solid one, though it would follow a blowout figure of 312,000 jobs that were added in December.

The partial government shutdown, the longest on record, isn’t expected to have had a significant effect on the January jobs report. That’s because of how the government will categorize the 800,000 federal workers who weren’t paid for five weeks. All will be counted as employed in the government’s count of jobs in January. That means the economy will almost certainly record the 100th straight month of job gains, a record.

Still, some of the roughly 380,000 federal workers who didn’t work and weren’t paid might be counted as unemployed in a separate survey the government uses to calculate the unemployment rate. If so, this could inflate the jobless rate by 0.2 percentage point, economists say, though the effect would be reversed in February as federal employees return to work.

Unlike some government agencies, the Labor Department received its annual funding before the shutdown and has operated normally throughout.

“The shutdown was very traumatic for federal workers, but it will probably not show up in most of the data for private sector workers,” said Andrew Chamberlain, chief economist for the employment site Glassdoor.

One unknown factor is the impact of the shutdown on government contractors, who perform a wide range of jobs – from janitorial work to data management. Some of them who were furloughed may receive back pay. But some won’t, and they could contribute to a higher unemployment rate and lower job count.

Still, a solid jobs report would provide reassurance that the economy remains mostly healthy and likely to shake off any effects of the shutdown. One positive sign emerged Wednesday from the payroll processing company ADP. Its survey found that private businesses added more than 200,000 jobs in January. The ADP data doesn’t cover government workers and doesn’t always mirror the government’s official monthly jobs report. But it suggests that the shutdown had little effect on private-sector hiring last month.

In another encouraging sign, the number of people seeking first-time unemployment benefits reached a 49-year low two weeks ago, though the figure jumped higher last week.

“The fact that the labor market is hanging so tough is a reason for optimism,” said Mark Zandi, chief economist at Moody’s Analytics, which helps compile the ADP data. “As long as we are producing jobs at this pace, the economy will do OK.”

The government shutdown will probably end up slowing the economy’s growth for the first three months of the year. The nonpartisan Congressional Budget Office estimates that the shutdown lowered annual growth for the January-March quarter by about 0.4 percentage point, to a rate of 2.1 percent. Thousands of government workers who missed two paychecks slowed their spending. The federal government itself also spent less.

In addition, many businesses across the country lost income. Tourists cut back on visits to national parks, for example, thereby hurting nearby restaurants and hotels.

Yet even employers whose revenue dropped might have held onto their workers during January, Zandi said. With unemployment so low and many companies struggling to fill jobs, layoffs might not have been widespread.

Chamberlain said that Glassdoor’s data shows the number of job postings rose nearly 9 percent in late January compared with a year earlier, suggesting that demand for labor remained strong.

The shutdown has delayed the release of a range of government data about the economy, including statistics on housing, factory orders, and fourth-quarter growth.

The reports that have been released have been mixed. The Federal Reserve’s industrial production report showed that manufacturing output rose in December by the most in nearly a year, boosted by auto production.

But consumer confidence fell in January for a third straight month as Americans’ optimism dimmed amid the shutdown and sharp drops in the stock market. Falling confidence can cause consumers to restrain their spending, though economists note that confidence typically returns quickly after shutdowns end.

The housing market has clearly slumped as mortgage rates have increased. Sales of existing homes plunged in December and fell 3.1 percent in 2018 from the previous year. Mortgage rates have fallen back after nearly touching 5 percent last year, but the number of Americans who signed contracts to buy homes still declined in December.

China’s economy is decelerating sharply and Italy’s economy has entered recession, exacerbating fears that slower global growth will cut into U.S. exports.

Fed Chairman Jerome Powell on Wednesday cited the weaker global economy as a key reason why the central bank will be “patient” before it raises its benchmark interest rate again. That was a sharp turnaround from January, when Fed policymakers forecast two additional hikes for this year.
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Iranian crude oil imports by Asia’s top four buyers dropped to the lowest volume in three years in 2018 amid U.S. sanctions on Tehran, but China and India stepped up imports in December after getting waivers from Washington.

Asia’s top four buyers of Iranian crude — China, India, Japan and South Korea — imported a total 1.31 million barrels per day (bpd) in 2018, down 21 percent from the previous year, data from the countries showed.

That was the lowest since about 1 million bpd in 2015, when a previous round of sanctions on Iran led to a sharp drop in Asian imports, Reuters data showed.

The United States reimposed sanctions on Iran’s oil exports last November as it wants to negotiate a new nuclear deal with the country. U.S. officials have said they intend to reduce the Islamic Republic’s oil exports to zero.

On a monthly basis, Asia’s imports from Iran rebounded to a three-month high of 761,593 bpd in December as China and India stepped up purchases after Washington granted eight countries waivers from the Iranian sanctions for 180 days from the start of November.

“We expect Iranian exports to Asia to remain stable at around 800,000 barrels per day until May, when the waivers expire,” said Energy Aspects analyst Riccardo Fabiani.

In December, China’s imports climbed above 500,000 bpd for the first time in three months, while India’s imports rose above 302,000 bpd.

Japan and South Korea did not import any Iranian crude that month because they were still sorting out payment and shipping issues, but the countries have resumed oil lifting from Iran this month.

During the 180-day period, China can import up to 360,000 bpd of Iranian oil, while India’s imports are restricted to 300,000 bpd. South Korea can import up to 200,000 bpd of Iranian condensate.

“After May, it will all depend on the U.S. administration’s decisions, which at the moment remain completely obscure. On balance, they are likely to extend the current waivers, although rumors are that there could be a significant cut in waivered volumes,” Fabiani said.

As a precaution, Indian Oil Corp, the country’s top refiner, is looking for an annual deal to buy U.S. crude as it seeks to broaden its oil purchasing options, its chairman said Wednesday.
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Ghirardelli and Russell Stover have agreed to pay $750,000 in fines after prosecutors in California said they offered a little chocolate in a lot of wrapping.

Prosecutors in Sacramento, San Joaquin, Shasta, Fresno, Santa Cruz and Yolo counties sued the candy makers, alleging they misled consumers by selling chocolate products in containers that were oversized or “predominantly empty.”

Prosecutors also alleged that Ghirardelli offered one chocolate product containing less cocoa than advertised.

The firms didn’t acknowledge any wrongdoing but agreed to change their packaging under a settlement approved earlier this month. Some packages will shrink or will have a transparent window so consumers can look inside.

San Francisco-based Ghirardelli and Kansas City-based Russell Stover are owned by a Swiss company, Lindt & Sprungli.
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President Donald Trump will sign an executive order Thursday pushing those who receive federal funds to “buy American.” The aim is to boost U.S. manufacturing.

Peter Navarro, director of the White House National Trade Council, told reporters during a telephone briefing the policies are helping workers who “are blue collar, Trump people.” Later he amended that, saying he “every American is a Trump person” because Trump’s economic policies affect everyone.

Navarro said the order would affect federal financial assistance, which includes everything from loans and grants to insurance and interest subsidies.

He says some 30 federal agencies award over $700 billion in such aid each year. Recipients working on projects like bridges and sewer systems will be encouraged to use American products.

 
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Thousands of commuters flock to Manila’s railway tracks every day, but rather than boarding the trains, they climb on to wooden carts pushed along the tracks, to avoid the Philippine capital’s infamous traffic gridlock.

The trolleys, as the carts are known, most of them fitted with colorful umbrellas for shade from the sun, can seat up to 10 people each, who pay as little as 20 U.S. cents per ride, cheaper than most train rides.

“I do this because it gives us money that’s easy to earn,” said Reynaldo Diaz, 40, who is one of more than 100 operators, also known as “trolley boys,” who push the carts along the 28-km (17-mile) track, most wearing flimsy flip-flops on their feet.

“It’s better than stealing from others,” said Diaz, adding that he earned around $10 a day, just enough for his family to get by. A trolley boy since he was 17, he lives in a makeshift shelter beside the track with his two sons.

Diaz said the trolley boys were just “borrowing” the track from the Philippine National Railways, but the state-owned train company has moved to halt the trolley service after the media drew attention to its dangers recently.

The risk arises because those pushing and riding the trolleys have to watch out for the trains to avoid collisions.

“Of course we get scared of the trains,” said Jun Albeza, 32, who has been a trolley boy for four years after he was laid off from plumbing and construction jobs.

“That’s why, whenever we’re pushing these trolleys, we always look back, so we can see if there’s a train coming. Those in front of us will give us a heads-up too.”

When a train approaches, the trolley boys quickly grab the lightweight carts off the track and jump out of the way along with their riders.

Still, there have been no fatal accidents since the makeshift service started decades ago, some of the trolley boys told Reuters.

A Manila police officer confirmed that records showed no casualties related to the trolley boys.

“It is really dangerous and should not be allowed, But we understand that it’s their livelihood,” said the officer, Bryan Silvan. “They’re like mushrooms that just popped up along the tracks and they even have their own association.”

When the Philippine National Railways began operation in the 1960s, its network of more than 100 stations extended to provinces outside Manila.

But neglect and natural disasters have since caused it to cut back operations by two-thirds, even as the capital’s population has ballooned to about 13 million.

For office workers and students, the minutes shaved off daily commutes justify the risks of trolley rides.

“The distance to our workplaces is actually shorter through this route,” said one office worker, Charlette Magtrayo.
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U.S. lawmakers on Wednesday introduced legislation to limit the president’s power to levy import tariffs for national security reasons. The bills face an uncertain future but underscore bipartisan concerns on Capitol Hill over the rising costs of the Trump administration’s trade policies.

The United States in 2018 slapped duties on aluminum and steel from other countries, drawing criticism from lawmakers who support free trade and complaints of rising supply chain costs across business sectors.

Two bipartisan groups of lawmakers Wednesday introduced legislation known as the Bicameral Congressional Trade Authority Act in the Senate and the House of Representatives.

The bills would require Trump to have congressional approval before taking trade actions like tariffs and quotas under Section 232 of the Trade Expansion Act of 1962. The law currently allows the president to impose such tariffs without approval from Capitol Hill.

“The imposition of these taxes, under the false pretense of national security (Section 232), is weakening our economy, threatening American jobs, and eroding our credibility with other nations,” said Republican Senator Pat Toomey of Pennsylvania, co-sponsor of the Senate bill.

Toomey led a similar push last year that did not go to a vote.

It is unclear that Congress would consider taking up such legislation now. Still, the bills underscore mounting pressure from lawmakers to address concerns over tariffs, especially those on Canada and Mexico as lawmakers prepare to vote on a new North American trade deal agreed to late last year.

​Republican Chuck Grassley from Iowa, chairman of the Senate Finance Committee, earlier pressed the Trump administration to lift tariffs on steel and aluminum imports from Canada and Mexico before Congress begins considering legislation to implement the new pact.

Numerous business and agricultural groups have come out in support of the United States-Mexico-Canada agreement, but have said its benefits will be limited so long as the U.S. tariffs and retaliatory tariffs from Canada and Mexico remain in place.

Companies are able to request exemptions from the steel and aluminum tariffs, but the process has been plagued by delays and uncertainty.

“Virginia consumers and industries like craft beer and agriculture are hurting because of the president’s steel and aluminum tariffs,” said Democratic Senator Mark Warner, co-sponsor of the Senate legislation. “This bill would roll them back.”

Republicans Mike Gallagher of Wisconsin and Darin LaHood of Illinois and Democrats Ron Kind of Wisconsin and Jimmy Panetta of California introduced the House legislation.
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The Trump Organization, responding to claims that some of its workers were in the U.S. illegally, said on Wednesday that it will use the E-Verify electronic system at all of its properties to check employees’ documentation.

A lawyer for a dozen immigrant workers at the Trump National Golf Club in New York’s Westchester County said recently that they were fired on Jan. 18. He said many had worked there for a dozen or more years. Workers at another Trump club in Bedminster, New Jersey, came forward last month to allege managers there had hired them knowing they were in the country illegally.

“We are actively engaged in uniforming this process across our properties and will institute E-verify at any property not currently utilizing this system,” Eric Trump, executive vice president of the Trump Organization, said in a statement provided to The Associated Press. “As a company we take this obligation very seriously and when faced with a situation in which an employee has presented false and fraudulent documentation, we will take appropriate action.”

“I must say, for me personally, this whole thing is truly heartbreaking,” he added. “Our employees are like family but when presented with fake documents, an employer has little choice.”

Launched in 1996, the E-Verify system allows employers to check documentation submitted by job applicants with records at the Department of Homeland Security and the Social Security Administration to see whether they are authorized to work. 

During his presidential campaign, Republican Donald Trump called for all employers to use the federal government online E-Verify system. He told MSNBC in 2016 that he uses it at his properties, and that there should be a “huge financial penalty” for companies that hire workers who are in the country illegally.

Several of those workers from Trump’s properties paid visits to Congressional offices this week in hopes of raising support for their fight against possible deportation. One Democrat, New Jersey Rep. Bonnie Watson Coleman, confirmed Wednesday that she had invited a maid who had cleaned President Trump’s rooms at Bedminster as her guest at his State of the Union speech.

The maid, Victorina Morales, was featured in a New York Times story last month titled “Making President Trump’s Bed: A Housekeeper Without Papers.” She has said that managers there knew she was living in the country illegally, helped her obtain false documentation and that she was physically abused by a supervisor.

Morales’ lawyer, Anibal Romero, said that Morales had accepted the invitation.

The Trump Organization has said it does not tolerate employing workers who are living in the U.S. without legal permission, and any problems with hiring is not unique to the company.

“It demonstrates that our immigration system is severely broken and needs to be fixed immediately,” Eric Trump said in his statement. “It is my greatest hope that our ‘lawmakers’ return to work and actually do their jobs.”

President Trump has repeatedly cast the millions of immigrants in the country illegally as a scourge on the health of the economy, taking jobs from American citizens. He has said they also bring drugs and crime over the border.

He turned over day-to-day management of his business to Eric and his other adult son, Donald Jr., when he took the oath of office two years ago. The Trump Organization owns or manages 17 golf clubs around the world.
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The Philippines ranked among Asia’s 10 fastest growing economies in 2017. Consumer power, remittances from overseas workers and an influx of call centers had given it that status, raising hopes for easing rampant poverty. Then GDP expansion wobbled in 2018 because of rising prices and lack of new direct investment.

Now state spending on new infrastructure and local tourism are expected to decide whether the Philippines can get back on track this year.

The Philippine economy grew 6.2 percent last year, down from 6.7 percent in 2017 and 6.9 percent a year earlier. Inflation dented consumption in late 2018, while factory investors stayed away for lack of infrastructure compared to what’s available elsewhere in Asia. Storm damage to crops, another economic backbone, and the six-month shutdown of the tourist hotspot Boracay Island ate away further at growth.

“I think it’s a combination of factors,” said Eduardo Araral, associate professor at the National University of Singapore’s public policy school. “One would be inflation, because that would slow down consumption. Infrastructure is always a constraint. The economy is growing, but the bottlenecks are not yet fixed.”

Slumps in farming, consumption

A spike in consumer prices in the Philippines in late 2018 angered many, testing the popularity of President Rodrigo Duterte in his third year in office. August inflation set a nine-year record at 6.4 percent, then the highest in Southeast Asia.

World oil price hikes were felt at the pump, while reports of rice scarcity raised prices in some parts of the country. More than 70 percent of the $313 billion Philippine economy comes from consumption, and people – especially the poor – mind their spending when prices are up.

The GDP struggled to grow also after deadly typhoon Mangkhut caused $509 million in agricultural damage in September and three months later tropical storm Usman caused another $19 million in farm losses.

The Western Pacific archipelago gets typhoons every year but still lacks infrastructure to withstand them, said Song Seng Wun, regional economist with the private banking unit of CIMB in Singapore.

Tourism was robust overall last year, but the closure of Boracay Island hurt the country’s prime tourism spot. Duterte declared a state of calamity from April through October to clean up the island, which had brought in more than $1 billion in tourism receipts in 2017.

Quest for investors

But the lack of capital investment weighs particularly hard on economic policymakers this year. The country, known for cheap, skilled labor, is still missing the ports, railways and power generation capacity that business people expect before opening shop. Investment would create jobs, in turn easing poverty.

“In terms of the whole ease of doing business, the Philippines ranks very low, but one of those reasons is poor infrastructure,” said Rajiv Biswas, Asia-Pacific chief economist at IHS Markit.

To attract more capital, the government is building $171 billion worth of infrastructure by 2022, one of Duterte’s priorities in office. By the same year, the government aims to cut poverty from 22 percent to 14 percent of the population.

Officials are sighting for this year new roads and a railway system on the impoverished island of Mindanao, flood control work around Manila and the first phase of a Metro Manila subway project, Budget and Management Secretary Benjamin Diokno said on his department’s website.

Progress on infrastructure would also show that the Philippines can overcome political fights that include open spats between Duterte and his detractors in Congress or the mass media, economists believe.

“Investors like clarity,” Song said. “So when you have leaders or opinion makers who can be very abrasive as well, would you want to be putting in millions of millions of investments given that environment?”

The budget department flagged manufacturing growth as an “area of concern.” In a statement on the 2018 economy, the department urged more transport infrastructure and asked Congress to amend the Foreign Investments Act, which deters foreign investors by limiting how much they can invest in certain local industries.

Bright spots

Some analysts already point to bright spots in the 2019 economy. Tourism on the heavily populated island Cebu stands to help real estate there, Biswas said, while tourism and investment are booming near the former U.S. airbase at Clark Field.

The Asian Development Bank expects 6.7 percent growth this year.

“If you look at it from a perspective that the Philippines is actually working on its infrastructure to attract investors, you have a government commitment to keep on spending, and you have a country whose growth is actually moving away from the key cities but into other areas, that will support above 6 percent growth,” said Jonathan Ravelas, chief market strategist with Banco de Oro UniBank in Metro Manila.
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Brazilian miner Vale SA identified concerns around its tailings dams in 2009 and studied but did not implement several steps that could have prevented or lessened the damage from last week’s deadly disaster, according to a corporate presentation seen by Reuters.

A tailings dam, used to store the muddy detritus of the mining process, collapsed on Friday, killing at least 65 in one of Brazil’s largest industrial accidents on record.            

The Brumadinho disaster, coming just over three years after a similar incident at another mine partially controlled by Vale, has fueled calls for a management overhaul and erased more than 70 billion reais ($18.61 billion) in Vale’s market value.      

But a decade ago, the world’s largest iron ore miner was considering ways to use fewer tailings dams, including alternative uses for the waste rock, according to the 73-page presentation.

The presentation pointed to the rising volume of tailings produced at the company’s mines, with some locations producing hundreds of thousands of tons of tailings daily.

The report suggested Vale make building materials from tailings, including bricks, a step that would give the company another revenue source and lessen the volume needing to be stored using dams.

The 2009 Vale report had recommended the company undertake a project to be called “Zero Dams” that would have involved drying out tailings, among other steps. It was not known whether the report reached the top levels of Vale management nor why it was not implemented.

Vale declined to comment. The report’s author, Paulo Ricardo Behrens da Franca, left Vale a year after submitting it and now works as an industry consultant. Reached by Reuters, he did not comment.

‘Inherently Dangerous Structures’

Vale’s Brumadinho facility was built using the cheapest and least-stable type of tailings dam design, a commonly used structure in mining known as “upstream construction.”

Chile, Peru and other earthquake-prone countries ban the design, in which tailings are used to progressively construct dam walls the more a mine is excavated. Brazil is not as earthquake-prone as its western neighbors, but even small seismic activity has been shown to affect tailings dams.

Because these types of tailings dams are waterlogged, they are easily susceptible to cracks and other damage that can cause bursts like the one that occurred last week near Brumadinho.

“A tailings dam may look safe, but it’s still retaining a lot of moisture behind it,” said Dermot Ross-Brown, a mining industry engineer who teaches at the Colorado School of Mines. “They’re inherently dangerous structures.”

Tailings dams tend to be shorter in height than conventional water dams, but often are far wider in span.

The disaster’s cause remains unknown. Vale said the dam had not received tailings for about two and a half years and was in the process of decommissioning, a step that should have lessened risk, engineers said.

“It’s really puzzling to me this happened as the (dam) was closing,” said Cameron Scott of SRK Consulting, a mining engineering firm. “This disaster will make future mine permitting harder.”

The dam had passed a September 2018 inspection by the German firm TUEV SUED AG and Vale Chief Executive Fabio Schvartsman said equipment had shown the dam was stable on Jan.

10.            

On Tuesday, Brazilian state prosecutors arrested three Vale employees and two TUEV SUED employees.                

Risk

Brazil has nearly 4,000 dams that are classified as having “high damage potential” or being at high risk, with 205 of those dams containing mineral waste, the country’s Regional Development Minister Gustavo Canuto said.             

Analysts and engineers said that the Brumadinho disaster will hopefully push the industry to stop storing wet tailings and instead move toward the more-expensive-but-safer process of storing dry tailings.

That process requires drying the tailings and storing them on-site, abrogating the risk of a dam burst. The approach is becoming more popular in Canada and other countries with stricter mining regulations.    

“The industry doesn’t yet fully realize the risk its taking on with those type of wet tailings dams,” said Matt Fuller of Tierra Group International Ltd, a tailings engineering consulting firm.

Officials in Brazil’s Minas Gerais state, where the disaster occurred, say they are now going to push for legislation requiring dry mining and forcing miners to tear down tailings dams when they are located above communities.

A similar proposal failed last summer, with its defeat attributed by the bill’s sponsor to lobbying pressure from mining companies.

Brazil is still reeling from the 2015 collapse of a larger dam, owned by the Samarco Mineracao SA joint venture between Vale and BHP, that killed 19 people.

After Samarco, the International Council on Mining and Metals (ICMM) issued updated guidelines for its members to try to safeguard tailings dams used to store waste left over from mining operations.

The ICCM said on Saturday that the mining industry still has “lessons to learn” from Samarco and similar events.            

Mining companies typically hire engineering firms that specialize in tailings dams to build the structures, not necessarily dam contractors themselves, a step that some industry observers hope changes soon.     

“The mining companies are not placing dam safety at the forefront of their preoccupations,” said Emmanuel Grenier, a spokesman for the International Coalition of Large Dams (ICOLD), a non-governmental organization focused on dam engineering.

The group “is recommending that dams, especially large dams, be built by dam professionals, but it is too rarely the case for tailing dams,” Grenier said.

($1 = 3.7614 reais)
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