China: ‘No Winners in a Trade War’

China said Sunday it does not intend to ignite a trade war with the U.S. because the move would be disastrous for the entire world.

“There are no winners in a trade war,” Minister of Commerce Zhong Shan said on the sidelines of China’s annual parliamentary session.

“China does not wish to fight a trade war, nor will China initiate a trade war, but we can handle any challenge and will resolutely defend the interests of our country and our people,” Zhong said.

President Donald Trump signed proclamations Thursday imposing a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum, with the new taxes set to go into effect this month.

​US, Japan, EU talk

Trade representatives for Japan and the European Union met with the U.S. trade representative Saturday in an effort to avoid a trade war over Trump’s new tariffs on aluminum and steel.

At the meeting in Brussels, U.S. Trade Representative Robert Lighthizer, EU Trade Commissioner Cecilia Malmstrom and Japanese counterpart Hiroshige Seko discussed the tariffs as part of a trilateral effort to combat unfair trade practices.

The EU said in a statement that both Brussels and Tokyo had serious concerns about the U.S. tariffs. Both powers, two of the biggest trade partners with the United States, have asked for exemptions from the tariffs.

After the meeting, Malmstrom tweeted, “No immediate clarity on the exact U.S. procedure for exemption … so discussions will continue next week.”

“I firmly and clearly expressed my view that this is regrettable,” Seko said at a news conference following the meeting. “… I explained that this could have a bad effect on the entire multilateral trading system.”

Saturday afternoon, Trump accused the EU of treating “the U.S. very badly on trade.” He said if they drop their “horrific barriers & tariffs on U.S. products… we will likewise drop ours,” he wrote in a tweet.

If they don’t, he warned the U.S. would tax European cars and other products.

​Exemptions unclear

On Friday, the European Union said it is not clear whether the bloc will be exempt from Trump’s steel and aluminum tariffs.

EU Trade Commissioner Malmstrom said Friday in Brussels, “We hope that we can get confirmation that the EU is excluded from this.”

Canada and Mexico were given specific exemptions from the tariffs for an indefinite period while negotiations continue on the North American Free Trade Agreement (NAFTA).

Brazil, South Korea and Australia have also asked for exemptions or special treatment.

Trump imposed the tariffs despite pleas from friends and allies who warned the new measure could ignite a trade war.

Trade Representatives From US, EU, Japan Discuss New Metal Tariffs

Trade representatives for Japan and the European Union met with the U.S. trade representative Saturday in an effort to avoid a trade war over President Donald Trump’s new tariffs on aluminum and steel.

At the meeting in Brussels, U.S. Trade Representative Robert Lighthizer, EU Trade Commissioner Cecilia Malmstrom and Japanese counterpart Hiroshige Seko discussed the tariffs as part of a trilateral effort to combat unfair trade practices.

The EU said in a statement that both Brussels and Tokyo had serious concerns about the U.S. tariffs. Both powers, two of the biggest trade partners with the United States, have asked for exemptions from the tariffs.

After the meeting, Malmstrom tweeted, “No immediate clarity on the exact U.S. procedure for exemption … so discussions will continue next week.”

Seko said at a news conference following the meeting, “I firmly and clearly expressed my view that this is regrettable. … I explained that this could have a bad effect on the entire multilateral trading system.” 

Saturday afternoon, Trump accused the EU of treating “the U.S. very badly on trade.” He said if they dropped their “horrific barriers & tariffs on U.S. products … we will likewise drop ours.”

If they don’t, he warned, the United States will tax European cars and other products.

On Friday, the European Union said it was not clear whether the bloc would be exempt from Trump’s steel and aluminum tariffs.

Malmstrom said Friday in Brussels, “We hope that we can get confirmation that the EU is excluded from this.”

Trump signed proclamations Thursday imposing a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum, with the new taxes set to go into effect in two weeks. 

Canada and Mexico were given specific exemptions from the tariffs for an indefinite period while negotiations continue on the North American Free Trade Agreement.

Brazil, South Korea and Australia have also asked for exemptions or special treatment.

Trump imposed the tariffs despite pleas from friends and allies who warned the new measure could ignite a trade war.

France’s Far Right Seeks Reboot Through Name Change, Unity Push

Former White House adviser Steve Bannon’s surprise address Saturday at a key far right party meeting in France gives a boost to its struggling leader, Marine Le Pen. While other European far-right movements are surging on anti-immigrant platforms, France’s National Front is weakened and divided. Le Pen hopes to rally supporters around a new party name – and possibly a new direction.

Far-right parties in Austria and Italy may be celebrating recent polls, but France’s National Front shows how fast politics can change. Less than a year ago, National Front leader Marine Le Pen came in second in France’s presidential election against current leader Emmanuel Macron, capturing a record one-third of the vote.

But today, the National Front is in disarray. Some of its top officials have quit. Some members have not paid their dues – and the new head of the more mainstream Les Republicains party is tilting rightward to lure others away. A recent poll shows the majority of French don’t want Le Pen to run for president again.

But Le Pen is betting this weekend’s meeting in the northern city of Lille will be a turnaround – partly by rebranding a party founded by her father, Jean-Marie Le Pen, in the 1970s. National Front members get to vote on a new name for the party, which will be announced on Sunday.

“The National Front has grown up,” Le Pen told French TV Friday night. “It has gone from a party of protest in its youth, to a party of opposition and now a governing party. Changing its name is one way to show this,” she said.

The rebranding is part of a long effort by Le Pen to give the National Front a softer, more mainstream image since taking over leadership from her father seven years ago. The two have since fallen out, and the elder Le Pen was expelled from the party in 2015 over inflammatory remarks. Meanwhile, Marine Le Pen hopes to strike alliances with other nationalist parties before European Parliament elections next year.

Some are not convinced her strategy will work.

Critics include Le Pen’s former right-hand man, Florian Philippot, who quit the National Front last year to form his own party. In a TV interview, he said nobody believes in the National Front anymore – not even Marine Le Pen. He said the party has abandoned its social fight and anti-Europe values.

But analysts believe the anti-immigrant, anti-globalization platforms that resonate in Europe today will continue to give the National Front meaning and votes – under whatever name it adopts.

 

UK Security Team to Hold Emergency Meeting on Russian Ex-Spy

British government security ministers are holding an emergency meeting to discuss the investigation into the poisoning in England of a Russian who spied for Britain.

 

The meeting Home Secretary Amber Rudd is leading on Saturday will cover the latest police and intelligence reports from Salisbury, where a military-supported investigation is underway.

 

Police are looking for clues to the mysterious attack on former Russian military intelligence officer Sergei Skripal and his daughter, Yulia.

 

They were found unconscious on a bench near the River Avon in Salisbury on Sunday. They remain in critical condition in a local hospital, poisoned with what authorities say is a rare nerve agent

 

Police are searching for clues at the gravesites of Skripal’s wife and son, and at Skripal’s house. A restaurant and pub have also been searched.

 

Turkey President Slams NATO for Lack of Support in Syria

Turkey’s president has criticized NATO for not supporting the country’s ongoing military operation against Syrian Kurdish fighters in Syria.

 

Speaking to supporters Saturday, Turkish President Recep Tayyip Erdogan asked, “Hey NATO, where are you?” and accused the alliance of double standards. Erdogan said Turkey sent troops to conflict zones when requested, but did not receive support in return.

 

Turkey launched a solo military offensive against the Syrian Kurdish People’s Protection Units or YPG on January 20 to clear them from Afrin in northwestern Syria. The country considers the YPG a terror organization but its NATO ally, the United States, backs the fighters to combat the Islamic State group.

 

Erdogan urged NATO to come to the aid of Turkey, saying its borders are “under threat right now.”

Turkish Court Orders Release of Journalists During Their Trial

A Turkish court ruled on Friday that two journalists should be released for the duration of their trial for subversion, a lawyer at the courthouse said.

Murat Sabuncu, editor-in-chief of the newspaper Cumhuriyet, and writer Ahmet Sik were ordered released, the lawyer said.

However, Cumhuriyet said that its attorney, Akin Atalay, was remanded in custody until the next hearing, on March 16.

Prosecutors charge that Cumhuriyet was effectively taken over by supporters of Fethullah Gulen, a U.S.-based cleric blamed by the government for a 2016 failed coup. The newspaper and staff deny the charges and say they are being targeted to silence critics of President Tayyip Erdogan.

Prosecutors are seeking up to 43 years in jail for the newspaper staff, who stand accused of targeting Erdogan through “asymmetric war methods.”

Social media posts made up most of evidence in the indictment, along with allegations that staff had been in contact with users of Bylock, an encrypted messaging app the government says was used by Gulen’s followers.

Rights group Amnesty International said on Twitter that the ruling was “long overdue” and called for the release of all jailed journalists in Turkey.

Speaking after his release, Sabuncu said their release was not a reason to be happy, since several journalists remained in prison.

“We should not be happy that we have been released because our release does not mean things have changed in Turkey regarding freedom of speech,” Sabuncu told reporters.

Sik reiterated Sabuncu’s comments, saying he would rather see anger than happiness.

“I am not happy in any way. I don’t want you to be happy while Akin Atalay is still inside. I would prefer if you were angry, for anger will keep us standing,” Sik said.

“Today is not a day for us to be happy, but there will come a day when we will be happy in this country,” he said.

Around 150 media outlets have been shut down and 160 journalists have been jailed, the Turkish Journalists Association says.

Earlier on Friday, Turkey’s highest court overturned a five-year jail sentence for Cumhuriyet’s former editor-in-chief, Can Dundar, saying he should face up to 20 years in prison on espionage charges, the state-run news agency Anadolu said.

Since the July 2016 coup attempt, more than 150,000 people have been sacked or suspended from their jobs in Turkey, and another 50,000 have been arrested over alleged links to Gulen’s network.

Gulen, who has lived in self-imposed exile in the United States since 1999, has denied involvement in the abortive putsch, in which more than 240 people were killed.

Russian State Pollsters: Putin Popularity Slipping Ahead of Election

A respected Russian-language business newspaper is reporting a 12-percent drop in President Vladimir Putin’s popularity in cities with more than 1 million inhabitants between mid-January and mid-February.

Moscow-based Vedomosti, which was once a joint venture between Dow Jones, the Financial Times and the publishers of The Moscow Times, based its report on a survey issued by the state-run Center for the Study of Public Opinion (VTsIOM).

According to VTsIOM, Putin’s popularity fell from almost 70 percent to slightly above 57 percent in large and mid-size Russian cities whose populations cumulatively represent roughly one quarter of the electorate.

Valery Fyodorov, director of VTsIOM, was quick to deny the legitimacy of the survey findings his organization published in late February, which revealed the dip in Putin’s popularity.

A VTsIOM follow-up survey conducted from March 2-4, Fyodorov said, showed Putin’s 12-percent plunge was an “insignificant and temporary decrease.”

“On January 10, Putin’s popularity rose to almost 70 percent, and on February 18, it fell to 57.1 percent,” he said. “Now [Putin], in Moscow and St. Petersburg, has an approval rating of 63 percent.”

According to Meduza, a Latvia-based Russian language news outlet, “polls show the same trend” of a 12-percent drop “in cities with populations between 100,000 and 500,000 people.”

“Putin’s candidate rating has remained stable only in cities with populations between 500,000 and 950,000 people, and in smaller towns and villages,” the Meduza report says, adding that VTsIOM also shows an increasing number of undecided voters and people who endorse Pavel Grudinin, the Communist Party’s candidate, in large cities.

Competing ‘with himself’

In some independent Russian media such as Znak.com, where election 2018 is often called the “re-election of Vladimir Putin,” Kremlin officials are already preparing a rally and concert in Putin’s honor on March 18 or 19, when preliminary results of the vote will be announced.

Political scientist Nikolai Petrov of Moscow’s National Research University Higher School of Economics (NRUHSE) says although uneven voter turnout in cities and rural areas may not affect the outcome of the election, severe irregularities would be bad for Putin’s political legacy.

“In this sense, the Kremlin is in a difficult situation,” he told VOA’s Russian Service. “Because the last thing he wants is either a too wide a gap or too low a voter turnout in [Moscow or St. Petersburg], where it is very difficult for him to ensure high turnout.

“Putin is competing not with other presidential candidates, but with himself,” Petrov added, explaining that the aging Russian leader’s last re-election bid was met with massive streets protests in major cities. In this sense, he said, “he must not lose in a significant way in this internal, mental competition” to secure his long-term political and populist legitimacy.

Turnout key

According to NRUHSE social scientist Alexander Kynev, Putin and those tasked with ensuring his re-election walk a fine line when it comes to presenting research about his popular appeal. Excessively high popularity ratings for Putin, he said, risks giving his support base the impression that there is no need to bother going out to the polls.

“In this sense, it may be better to preserve the intrigue and induce the voter, regardless of the fact that the result looks predetermined, to come out and vote on March 18,” Kynev said.

The Kremlin’s preference for a high voter turnout to give a Putin re-election the appearance of democratic legitimacy has been widely reported in international media.

This story originated in VOA’s Russian Service. 

US Tariffs Spark Fears of Trade Conflict in Asia

Several Asian nations that are major trading partners with the U.S. reacted strongly Friday to a U.S. decision to impose tariffs on metal imports, raising concerns of global trade conflicts.

China, a key target of U.S. trade concerns, said it was “resolutely opposed” to the U.S. tariff decision, with Japan warning of the impact on bilateral ties.

South Korea said it may file a complaint to the international trade dispute body, the World Trade Organization (WTO). South Korea is the third-largest steel exporter to the U.S. after Canada and Brazil.

Several Southeast Asian nations say they fear a wave of import dumping of steel and aluminum products.

U.S. President Donald Trump, turning aside warnings from economists and members within the Republican Party, signed an order Thursday for new tariffs of 25 percent on steel and 10 percent on aluminum imports to the U.S., saying the measures were necessary to protect U.S. industry.

Trump has exempted key exporters of steel and aluminum, Canada and Mexico, while negotiating changes to the North American Free Trade Agreement (NAFTA), and other countries such as Australia also may be spared.

The U.S. is the world’s largest importer of steel, totaling 35 million tons of raw material in 2017, with South Korea, Japan, China and India accounting for 6.6 million tons.

Global reaction

Thai economist Wisarn Pupphavesa, a senior adviser to the Thai economic think tank, the Thailand Development Research Institute (TDRI), called the tariff aiming to protect U.S. industry a “very bad situation.”

“The U.S. has been a leader in the multilateral system, the leader in the trade liberalization, and the U.S. played a most important role in writing all the rules that are governing the global market now. But now President Trump decided to break those rules … so this is a very bad situation,” Wisarn told VOA.

Economists at London-based Capital Economics said in a release Friday the major concern over U.S. steps to increase tariffs is they mark a “turning point in U.S. policy to a much broader and deeper shift toward protectionism.”

Malaysia’s Second International Trade and Industry Minister, Datuk Seri Ong Ka Chuan, says the government is monitoring the impact of the tariff increase, although steel and aluminum contributed to less than one percent of Malaysia’s total exports.

But Thailand’s Federation of Thai Industries (FTI) said the threat lies in import dumping of steel and aluminum to the Southeast Asian market.

FTI secretary general, Korrakod Padungjit, told local media there were several leading exporters — Taiwan, Japan, South Korea, India, China, Vietnam and Turkey — that may now target Southeast Asia.

The vice president of the ASEAN [Association of South East Asian Nations] Iron and Steel Council, Roberto Cola, told media that excess steel supplies from China would head to Southeast Asia.

High demand

Southeast Asia’s fast-growing economies, such as the Philippines and Vietnam, face a high demand for steel to meet growing infrastructure and development needs.

Japan at 11 percent and China at 14 percent are reported to be the largest Asian exporters of aluminum to the U.S. A shift in exports to Asia would put producers in South Korea, Indonesia, Vietnam and Thailand under competitive pressure.

Thanomsri Fongarunrung, an economist at the Bangkok-based Phatra Securities, said Thailand already was facing steel import “dumping” by China. She said another fear lies in indirect impacts from any escalation into “tit-for-tat” trade protection measures from other regions, such as the European Union (EU).

The EU already has said it will seek to impose tariffs on selected U.S. imports ranging from alcohol to motorbikes.

But the TDRI’s Wisarn says the economic growth in Southeast Asia in the past decade, with its focus on China, will shield the region from major moves by the U.S. to boost trade protectionism.

“East Asia [has] become the new growth core of the global economy. So the impact of the U.S. action, in fact, would have very little impact as far as East Asia is concerned,” he told VOA.

As a result, the role of the economies of China, Japan and South Korea, as well as Australia and New Zealand, will be enhanced by the U.S. decision.

Trade war

But analysts say the greater concern for regional trade and potential conflict lies ahead with a battle over intellectual property theft, especially targeting China.

Economists say the region’s economic growth potential could be hit by a trade war. The World Bank in a January assessment said growth in East Asia and Pacific is forecast at 6.2 percent in 2018, down slightly from 6.4 percent in 2017.

The World Bank, while upbeat, says “rising geopolitical tension, increased global protectionism” a tightening of global financial conditions, or a “steeper-than-expected” slowdown in major economies, including China, pose a downside risk to the regional outlook.

Spanish Judge Won’t Release Catalan Separatist For Vote

Spain’s Supreme Court on Friday turned down a request from a jailed Catalan separatist leader to attend the northeastern region’s parliament session, where lawmakers are due to vote on whether to make him president of Catalonia.

 

Judge Pablo Llarena wrote in a ruling that there was a risk that Jordi Sanchez would repeat the offenses that have landed him in jail. He ordered Sanchez kept in preventive detention without bail.

 

Sanchez, a prominent secessionist who was elected to parliament last December, has been held in a prison near Madrid since October. He is being detained while Llarena investigates whether he orchestrated protests that hindered officials trying to stop a court-banned Catalan independence referendum that month.

 

Catalonia’s parliament wants to vote on Sanchez as leader Monday in the latest confrontation with the Spanish government, which argues that anyone who is facing charges and is unable to be present at the debate and vote can’t be elected by the Catalan parliament. It isn’t clear whether Sanchez would have enough votes to be elected in Barcelona.

 

The Spanish Constitution says Spain is “indivisible,” but that hasn’t stopped separatists trying to break away despite repeated legal setbacks.

 

 Carles Puigdemont, Catalonia’s ex-leader who fled to Brussels to escape arrest, announced last week that he was temporarily withdrawing his bid to get his old job back and proposed Sanchez – his No. 2 in the Together for Catalonia party – in his place.

 

China Gears Up to Retaliate Against US Tariffs

China is gearing up to retaliate in response to stiff U.S. tariffs on steel and aluminum as Chinese industry associations urge authorities to take “resolute measures.” Retaliation from Beijing could contribute to a possible trade war between the world’s two biggest economies, analysts said.

China’s Ministry of Commerce has pledged to “firmly defend its legitimate rights and interests” and called for an end to the measures as quickly as possible.

In a statement posted on the website of the China Iron and Steel Association, the group appealed to the government in Beijing “to take resolute measures against imports of some U.S. products, including stainless steel, galvanized sheet, seamless pipe, coal, agriculture products and electronic products.”

While the possibility of retaliating over steel and hitting agricultural imports and other sectors has been mentioned previously, it was the first time that coal has been drawn into the brewing spat.

China’s increased imports of coal over the past year have given the U.S. industry a needed boost.

The group also said U.S. President Donald Trump’s decision to impose 25 percent tariffs on steel would impact the global industry and be met with opposition from more countries. The U.S. has already taken other actions impacting Chinese exports of aluminum, solar panels and washing machines in recent months.

The Trump administration has asked China to reduce the trade deficit by $100 billion and threatened several actions to force Beijing to listen. In 2017, the trade gap between the two countries stood at $375 billion; but, there are early indications that the deficit might be much higher this year. In January, the monthly trade deficit with China surged 16.7 percent, to $36 billion, its highest level since September 2015.

Flashpoints

Chinese Foreign Minister Wang Yi acknowledged growing concerns about a trade war, while indicating that Beijing was working on possible retaliatory actions.

“I would like to say that history has taught us that trade wars are never the solution,” he said at a recent press conference on the sidelines of China’s annual political meetings. “It will only hurt both sides, and China will surely make a justified and necessary response.”

The minister advocated a “calm and constructive dialogue as equals” in order to find “a mutually beneficial and win-win solution.”

The stakes are high for both sides, but there are limits to the amount of damage they can inflict without hurting their own economies, analysts note.

China has already launched a probe into imports of U.S. sorghum, a grain used in animal feed and liquor.

There are two other flashpoints on the horizon — an upcoming report on whether China deserves blame for the large-scale theft of intellectual property rights, and a decision on the issue of dubbing Beijing as a currency manipulator.

“They will retaliate; they’ve already signaled following Trump’s steel tariffs [announcement] last week that they are going to take some measures. I think it is just a question of what they are going to decide to do,” Gareth Leather, a senior Asia economist with Capital Economics, told VOA while discussing the Chinese leadership’s plans going forward.

He said Beijing is clever and will likely target sectors of the economy in a manner that hurts the administration at a political level, he said.

Political acupuncture

“I think the key one [target] is going to be the U.S. agriculture sector. It’s obviously a politically key area for them,” Leather said. “So, they will look at certain sectors such as orange juice from Florida, for example. They will look at which senators are from there and see whether they are pro-free trade or not.”

Following the announcement, the communist party-backed Global Times said in an editorial that Beijing should show it will not be cowed.

“It [China] must retaliate against U.S. tariffs that forcibly interfere with Sino-U.S. trade and violate World Trade Organization rules. China must show it won’t be bullied,” the editorial said.

Beijing is expected to target soybeans, one of the most valuable U.S. exports to China. China has also used its purchase of Boeing aircraft as a bargaining chip in trade negotiations in the past and might now threaten to shift its preference to Airbus.

Leather said China is also closely studying the coming U.S. midterm elections to fine-tune its attack if that is necessary.

“I suspect what they’ll do is they’ll look at plants in certain swing states that may be suffering but have Republican congressmen up for elections and probably target those,” he said.

While the Trump administration’s measures go into effect in about two weeks, they alone will not have a major impact on the Chinese economy. For now, China’s response is likely to be quite symbolic, Leather said, and the Chinese are not likely to ratchet up the pressure too much.

“I think the risk is, however, that if the U.S. does press ahead on further protectionist measures, which do specifically target China, then, I think, China will have to respond in a much more aggressive way, and then obviously risks all end up getting a lot worse,” he said.

Trade is not the only area that could be a factor going forward.

In a daily newsletter, Trivium China, a research group in Beijing, said news that Trump is expected to meet with North Korean leader Kim Jong Un soon [to discuss ending the North’s nuclear program] could have an impact as well.

“If Xi Jinping helps to facilitate that meeting, it might buy China some time; but, it would only be a temporary reprieve from Trump’s trade ire,” the newsletter noted.

Students Learn Real Skills, Earn Simulated Profits

Young people around the United States are creating virtual businesses that produce simulated products, which are marketed and sold for virtual money. Thirteen hundred students recently showcased their ventures, ranging from telecom firms to gourmet food providers, in Pasadena, California.

At what looked like a corporate trade show, students from Miguel Contreras Business and Tourism School in Los Angeles solicited customers for their tour company. Teacher Darrell Iki helped the students launch Big City Tours, which exists only in the classroom and online. The company stages virtual tours to different parts of Los Angeles, highlighting the city’s ethnic heritage, fashion or high-end shopping. A related virtual company sells travel gear.

Students from Century High School in Santa Ana, California, sell a hypothetical translation device geared toward travelers. 

It all starts with a business plan, according to Iki, as students are named to executive positions and learn to “work together, having a common goal in a potentially successful business.”

The students quickly realized that business is complicated, according to the head of the nonprofit group that works with schools around the country to impart skills through simulations. Thirteen thousand students go through the program each year.

“They’re running meetings, they’re networking, they’re meeting with professionals, they’re working with mentors,” said Nick Chapman of Virtual Enterprises International. The students showcase their companies at competitions, like this one in California. Similar virtual business programs exist in schools in 40 countries.

One student entrepreneur said he now understands the pressure of running a company, in this case a food firm called Taste of the World. He has overseen human resources and digital media for the virtual firm at Century High School in California.

“You really need to be hands-on with your employees and make sure your guys have strong communication,” said Miguel Santin. “Otherwise, the company just won’t prosper.”

Taste of the World is a subscription service that, at least in theory, sends snacks to subscribers through the mail.

“You sign up for three months, six months, a year, and you receive a snack box with trinkets and information about that company every single month throughout your subscription time,” said teacher Alan Gerston.

No real money changes hands.

“You would pay within our virtual economy,” Gerston said, “using virtual money in a web-based simulated banking system. All the kids in the program have bank accounts, so when they buy something, we give them a receipt.”

There’s a lot to learn, noted teacher Stephen Jarvis of the Elizabeth Learning Center in Cudahy, California. “It isn’t just selling something. It’s all the things that go on behind the scenes — creating documents, figuring out if you’re making money or losing money,” he said.

The money isn’t real, but the skills are, said a student entrepreneur with the virtual company Big City Tours, who won a scholarship to college.

“I went to the interviews, and being in this company has helped me really prepare my presentation skills and be able to talk to other people,” said student Catalina Garcia, who will start college this fall and hopes to become a doctor. She says the skills she gained in a virtual company have helped her, whether or not she starts her own company or works in the corporate sector.

Trump’s Tariffs Elicit Strong Response at Home, Abroad

U.S. President Donald Trump’s announcement of new tariffs on steel and aluminum is eliciting strong reactions at home and around the world.

America’s neighbors breathed a sigh of relief at being granted an exemption from the tariffs. Foreign Affairs Minister Chrystia Freeland said despite the concession, Canada would continue to push back.

“In recent days, we have worked energetically with our American counterparts to secure an exemption for Canada from these tariffs,” she said. “This work continues and it will continue until the prospect of these duties is fully and permanently lifted.”

Canada is the largest supplier of steel and aluminum to the United States. Freeland ridiculed Trump’s national security justification for the measure, saying: “That Canada could pose any kind of security threat to the United States is inconceivable.”

​Allies combative

Other allies took an equally combative stance. 

“Protectionism, tariffs never really work,” British trade minister Liam Fox said Thursday. “We can deal multilaterally with the overproduction of steel, but this is the wrong way to go about it,” he said.

As did Canada, Fox said it was “doubly absurd” to target Britain with steel tariffs on national security grounds when it only provided the U.S. with 1 percent of its imports and made steel for the American military.

France said it “regrets” Trump’s decision. 

“There are only losers in a trade war. With our EU partners, we will assess consequences on our industries and agree (to an) appropriate response,” Economy Minister Bruno Le Maire tweeted Thursday.

Last week, Le Maire had warned that any such measures by the U.S. would be “unacceptable” and called for a “strong, coordinated, united response from the EU.”

​Negotiate exemptions

During the announcement of the tariffs, the White House said that countries concerned by the tariffs could try to negotiate possible exemptions.

“The EU is a close ally of the U.S. and we continue to think that the EU must be exempted from these measures,” said EU Commissioner for Trade, Cecilia Malmstrom.

“I will demand more clarity on this issue in the days to come,” she said.

Invitation to a trade war

Others also panned the tariffs as an invitation to a trade war. 

“If you put tariffs against your allies, one wonders who the enemies are,” said the president of the European Central Bank, Mario Draghi.

Chinese Foreign Minister Wang Yi warned, “Choosing a trade war is a mistaken prescription. The outcome will only be harmful. China would have to make a justified and necessary response.”

Brazil also said it planned such negotiations. 

“We will work to exclude Brazil from this measure,” acting Trade Minister Marcos Jorge told Reuters. Brazil is the United States’ No. 2 steel supplier.

​Mixed reactions on Capitol Hill

Many of the reactions around Washington were mixed.

“There are unquestionably bad trade practices by nations like China, but the better approach is targeted enforcement of those bad practices. Our economy and our national security are strengthened by fostering free trade with our allies,” House Speaker Paul Ryan said.

Senator Jeff Flake, R-Arizona, who is not planning to seek re-election, said he will “immediately” draft legislation that attempts to block the tariffs.

“These so-called ‘flexible tariffs’ are a marriage of two lethal poisons to economic growth: protectionism and uncertainty,” Flake said in a statement. “Trade wars are not won, they are only lost.”

But Democratic Senator Joe Manchin of West Virgina said he was “excited” by the idea of tariffs.

“I’m encouraged, I really am, and I think it gives us a chance to basically reboot, get jobs back to West Virginia, back to America,” he said.

British PM Promises ‘Appropriate’ Response to Poisoning of Former Russian Agent

British Prime Minister Theresa May is promising an “appropriate” response if it is discovered that Russia is responsible for poisoning a former Russian spy and his daughter.

“But let’s give the police the time and space to actually conduct their investigation,” she told ITV news Thursday. “Of course, if action needs to be taken, then the government … will do that properly at the right time and on the basis of the best evidence.”

Home Secretary Amber Rudd told Parliament “the use of a nerve agent on British soil is a brazen and reckless act. This was attempted murder in the most cruel and public way.”

A police official told Britain’s Sky News a total of 21 people were injured by the nerve agent released near a shopping center in the southern city of Salisbury.

Three people are still in the hospital — the apparent intended target, former Russian spy Sergei Skripal; his daughter, Yulia; and British policeman Nick Bailey, who came to their aid after he found the two slumped unconscious on an outdoor bench.

An eyewitness told British reporters Yulia Skripal was passed out, frothing at the mouth with her eyes “wide open, but completely white.” He said, “the man went stiff, his arms stopped moving, but he was still looking dead straight.”

Skripal and his daughter were still unconscious and in critical condition as of late Thursday. Bailey was in serious condition, but awake.

Police have been examining security camera footage of the crime scene and are reportedly focusing their attention on a man and woman spotted nearby.

Police have not publicly talked about the nerve agent that poisoned Skripal or who might have been responsible.

But suspicions are pointing to Russia. 

Skripal served in Russia’s military intelligence agency, GRU. He was exchanged in a Cold War-type spy swap in 2010 on the runway at Vienna’s airport.

After serving four years in prison in Russia for spying for Britain’s espionage service, MI6, Skripal was one of four Russian double agents exchanged for 10 Russians expelled from the United States, including Manhattan socialite Anna Chapman.

The incident is drawing comparisons to the case of Alexander Litvinenko, a Russian KGB officer-turned-British intelligence agent and a highly public critic of President Vladimir Putin.

Litvinenko died an agonizing death days after drinking tea laced with radioactive polonium-210 in a London hotel in 2006. British doctors struggled in that case to identify the substance that killed him.

A British inquiry concluded Putin probably approved the killing. The conclusion was angrily dismissed by the Kremlin as a politically motivated smear.

Russia is also denying any involvement in the Skripal poisoning.

Georgia Mulls Expedited NATO Membership Strategy

Georgian legislators in Tbilisi are mulling an expedited North Atlantic Treaty Organization (NATO) membership strategy following nearly a decade of frustrated efforts to join the military alliance.

NATO leaders pledged in 2008 to secure membership for Georgia and Ukraine but stopped short of granting the former Soviet republics Membership Action Plan (MAP) status, which would speed membership.

Now, Tbilisi lawmakers say they are seriously considering a fast-track approach recently put forward by the Washington-based Heritage Foundation think tank.

“In accordance to our national priorities and by consultations with our strategic partners, we will make every effort to accelerate our integration,” Georgian Parliamentary Speaker Irakli Kobakhidze told VOA, referring to the Heritage proposal to grant membership by temporarily excluding the country’s Russian-occupied territories of Abkhazia and South Ossetia from NATO’s Article 5 security guarantee.

Article 5 says an attack on one member is considered an attack on all members, which is why Moscow strongly opposes the NATO ambitions of Georgia in particular.

“Many are worried that Georgia’s NATO membership will mean automatic war with Russia over the occupied regions,” said Luke Coffey, the analyst who drafted the proposal for the conservative-leaning think tank. “Georgia can be invited to join NATO by amending Article 6 of the 1949 North Atlantic Treaty.”

Article 6 defines specific territories within a given nation that would be subject to NATO’s Article 5 security guarantee.

“This amendment can be made with Georgia’s accession protocol as it was in 1951 when Turkey and Greece joined the alliance,” said Coffey, describing his fast-track proposal as a temporary measure that would last until — and if — “Georgia’s full, internationally recognized territory is re-established by peaceful and diplomatic means.”

Although Georgia pledged in 2010 to not use force to try to regain control of the two breakaway regions, Russia never reciprocated and continues to recognize Abkhazia and South Ossetia as independent countries. The regions comprise 20 percent of Georgian territory, where Russia has maintained thousands of troops since fighting a five-day war against Tbilisi in 2008.

Coffey says offering Georgia NATO membership with an amended Article 6 would allow Georgia to join NATO more quickly and prevent Moscow from keeping other countries out of NATO by effectively occupying part of their territory.

However a top NATO official, who spoke on condition she not be identified, told VOA that the Brussels-based alliance believes Georgia should be able to enter NATO intact.

“Georgia will not be forced to choose between its territorial integrity and membership in NATO,” she said. “We call upon Russia to reverse its recognition of these territories, to stop the construction of border-like obstacles along the administrative boundary lines and to abide by its international commitments.

“This principle is stated in international agreements including the Helsinki Final Act and the NATO-Russia Founding Act, both signed by Russia,” she added. “No third country has a right to interfere on the issue of NATO membership. We support the right of all our partners to make independent and sovereign choices on foreign and security policy, free from external pressure or coercion.”

NATO-readiness questioned

Critics of Georgia’s NATO accession, such as William Courtney, a former U.S. ambassador to Georgia, say Tbilisi hasn’t proven that it is ready for membership.

“NATO allies need to be sure that Georgia can accept the financial burden of NATO membership,” Courtney told VOA.

“Currently, Georgia’s per capita gross domestic product is far below NATO average — it’s only one-fourth as high as the Baltic states,” he said, adding that Georgian rule of law and subpar territorial defenses were also impediments to accession. “Once Georgia is ready to go into NATO, Russia will think harder about engaging in aggression against Georgia because Georgia at that point will be stronger in its defense, stronger in its democracy and economy.”

NATO Secretary-General Jens Stoltenberg, however, has said, “Georgia has all the practical tools to become a member.”

Georgia is currently the fourth-largest contributor to NATO’s Resolute Support Mission in Afghanistan, where 870 Georgian military personnel help train, advise and assist Afghan defense and security forces. Georgia was the largest non-NATO troop contributor to the International Security Assistance Force until the program was terminated in 2014.

“NATO [has] accepted countries that were less ready for membership than Georgia is today,” said Mamuka Tsereteli, a senior fellow with the Central Asia-Caucasus Institute & Silk Road Studies Program for transatlantic research and policy.

This story originated in VOA’s Georgian service.

2018 International Women’s Day Marked by Newfound Activism

Rallies are being held across the globe Thursday to both celebrate International Women’s Day, and to demand an end to the exploitation, discrimination and violence that women continue to face.

In the Philippine capital of Manila, hundreds of women dressed in pink and purple took to the streets to protest the 4,000 people killed under President Rodrigo Duterte and his heavy-handed crackdown on illicit drugs.

Human rights activists say Duterte’s vow to kill thousands of illicit drug dealers have led police to carry out extrajudicial killings of suspected dealers and users.

In Seoul, women’s groups used the day to boost support for the American-born “Me Too” movement against sexual assault in the workplace. The movement has spread across the Asian economic giant after a female prosecutor revealed in January that she had been assaulted by a colleague several years ago, leading to the downfall of numerous high-profile men, including a provincial governor who was a leading presidential contender before he was accused of raping his secretary.

And women in Spain will walkout from their jobs Thursday as part of a “feminist strike” to highlight the social and economic disparities between men and women, including huge differences in pay. A recent study found that Spanish women on average were paid nearly 13 percent less than their male colleagues.

In the Indian capital, New Delhi, hundreds of women carrying placards and banners that read “United we fight, United we win,” Don’t Rape,” and “My body, My choice,” marched through the streets to protest domestic violence, sexual attacks and discrimination in jobs and wages.

In Myanmar, de facto leader Aung San Suu Kyi urged women to build peaceful democracies using their strength in politics, economics and social issues.

In Afghanistan, hundreds of women, who would have been afraid to leave their homes during Taliban rule, gathered in the capital, Kabul, to remind their leaders that plenty of work remains to be done to give Afghan woman a voice, ensure their education and protect them from increasing violence.

And in China, students at Tsinghua University used the occasion to make light of a proposed constitutional amendment to scrap term limits for the country’s president.

British Police: Nerve Agent Used in Poisoning of Russians

British Home Secretary Amber Rudd said Thursday will have a plan ready to respond if investigators identify someone responsible for a nerve agent attack against a former Russian double agent.

“There is nothing soft about the UK’s response to any sort of state activity in this country,” she told the BBC. “You may not hear about it all, but when we do see that there is action to be taken, we will take it.”

British counterterrorism police have said Sergei Skripal and his 33-year-old daughter were poisoned by a nerve agent Sunday in the normally quiet town of Salisbury.

A police officer who was part of the initial response to the incident was hospitalized. Rudd said Thursday the officer remained in serious condition but was able to talk.

“This is being treated as a major incident of involving attempted murder by the administration of a nerve agent,” Metropolitan Police counterterrorism chief Mark Rowley said. He would not identify the exact substance used or how it was delivered.

The poisoning is threatening a full-scale security and diplomatic crisis for Britain, with lawmakers demanding the government launch an urgent inquiry into more than a dozen recent suspicious deaths in Britain, all potentially tied to Russian intelligence services.

Skripal, 66, and his daughter, Yulia, are fighting for their lives after being found unconscious on a bench outside a shopping mall. Police have been examining CCTV footage and reportedly have focused their attention on a man and woman spotted nearby.

On Tuesday, Britain’s foreign minister, Boris Johnson, prompted sharp Russian rebuttals when he assured British lawmakers the government would get to the bottom of the mystery and threatened the imposition of new sanctions on Russia, if the Kremlin were found to have been responsible. Johnson said while he was not pointing the finger at this stage, he described Russia as “a malign and disruptive force.”

His remarks were characterized by Russian Foreign Ministry spokeswoman Maria Zakharova as “wild.” Russian diplomats in London accused Johnson of “demonizing” their country.

Mark Edele, a Russia analyst at the University of Melbourne in Australia, told VOA investigators may never know who was responsible.

“If Russia is behind this, they will certainly deny it. If they’re not behind it, they will also deny it,” Edele said. “And the only way to really find out would be to catch whoever did this, which given the level of professionalism involved is probably unlikely.”

The incident is drawing comparisons to Alexander Litvinenko, a highly public critic of President Putin and a Russian KGB officer-turned-British intelligence agent, who died agonizingly, days after drinking tea laced with radioactive polonium-210 in a London hotel in 2006. British doctors struggled in that case to identify the substance that killed him.

A British inquiry concluded the Russian leader probably approved the killing. The conclusion was dismissed angrily by the Kremlin as a politically motivated smear.

An eyewitness to the discovery of Skripal and his daughter, Jamie Paine, told British reporters the woman was passed out, frothing at the mouth and her eyes “were wide open, but completely white.” He said, “The man went stiff, his arms stopped moving, but he was still looking dead straight.” Adding to alarm, one of the emergency service workers who attended the pair has also been hospitalized.

Skripal, who served in Russia’s military intelligence agency, GRU, was exchanged in a Cold War-type spy swap in 2010 on the runway at Vienna’s airport. After serving four years in prison in Russia for spying for Britain’s espionage service, MI6, he was one of four Russian double agents exchanged for 10 Russian sleeper agents expelled from the United States, including Manhattan socialite and diplomat’s daughter Anna Chapman.

At the time, Putin, a former KGB officer, issued televised threats against those who had betrayed Russia. “Traitors will kick the bucket. Trust me. These people betrayed their friends, their brothers-in-arms. Whatever they got in exchange for it, those 30 pieces of silver they were given, they will choke on them,” he said.

In 2006, a new Russian law was adopted formally permitting extra-judicial killings abroad of people Russian authorities deemed extremist or terrorists, allowing the Russian president alone to order a killing.

.

Skripal had spied for Britain during the 1990s and continued to communicate with MI6 after his retirement in 1999 from the GRU, while working at the Ministry for Foreign Affairs in Moscow.

Russian prosecutors said Skripal received at least $100,000 for his collaboration with MI6, according to Russian news outlets. At his trial he admitted selling the names, addresses and code names of “several dozen” Russian agents operating in Europe to MI6 over a period of 10 years. British intelligence officials say Skripal identified as many as 300 Russian spies and moles.

A year after the spy swap, he bought a house in Salisbury for $360,000. He lived apparently quietly there with his wife, Lyudmila, until her death from cancer five years ago. But a relative told BBC Russia, “From the first day, he knew it would end badly, and that he would not be left alone,” he said.

As British investigators piece together what happened to Skripal, senior British lawmakers say other suspicious Russia-linked deaths during the past two decades need to be re-examined.

Among them: former oligarch Boris Berezovsky; Scot Young, a businessman impaled on an iron fence after a fall from a window; Badri Patarkatsishvili, a Georgian oligarch who died of an apparent heart attack in 2008; Yuri Golubev, an outspoken Putin critic, and Alexander Perepilichny, who fled Russia for London and gave evidence of high-level corruption to Swiss authorities.

VOA’s Jamie Dettmer, Victor Beattie and Chris Hannas contributed to this report.

Europe Split on Nord Stream 2 Pipeline as US Warns Against Dependence on Russian Gas

A number of eastern European states have ramped up their opposition to a new gas pipeline linking Russia with Germany.

The Nord Stream 2 project will bring Russian gas directly to Western Europe, but critics say it will increase dependence on Russia and enrich its state-owned energy firms, at a time when Moscow stands accused of undermining European security.

The $11 billion, 1,225-kilometer pipeline is on schedule for completion next year. It is a private project backed by Russian state-owned Gazprom and five energy companies from Germany, France, Britain and the Netherlands. It also has the strong backing of the German and Russian governments.

“We support the implementation of this project which is undoubtedly, absolutely free from politics. This is a purely economic and moreover purely commercial project,” Russian President Vladimir Putin told reporters after meeting the Austrian chancellor, Sebastian Kurz, last week in Moscow. Kurz also offered his support for the project.

Doing business with Putin

Many eastern states, however, say Europe should not be engaged in big business with President Putin. Some of the most vocal critics have been the Baltic states of Estonia, Latvia and Lithuania, whose foreign ministers traveled to Washington last week to meet Secretary of State Rex Tillerson.

“Security these days is increasingly indivisible. There’s no clear division between internal and external security and also geographically,” Estonian Foreign Minister Sven Mikser told reporters in Washington ahead of the meeting.

The United States is opposed to Nord Stream 2, having sanctioned Russian companies over Moscow’s annexation of Crimea, along with foreign companies involved in Russian energy exploration. So far, those sanctions don’t affect the new pipeline.

The European Commission also opposes the project but says there are no legal grounds to prevent the private investment from going ahead.

 

WATCH: Europe Split on Nord Stream 2 Pipeline as US Warns Against Dependence on Russian Gas

Softening sanctions

Opponents fear any additional revenues for Russia from Nord Stream 2 would soften the impact of sanctions. Many Eastern European states also question whether the new pipeline will benefit them economically, says Noah Gordon, analyst at the Center for European Reform, a London-based research group.

“There could be bottlenecks through central Europe and Eastern Europe, and those places could see prices rise and they might be more exposed to a Russian political gas cutoff. Ukraine would lose about $2 billion a year in transit fees.”

Currently, more than half of Russian gas exports to Europe are routed through Ukraine. Supporters of Nord Stream 2 say it would increase security of supply, citing recent price disputes between Moscow and Kyiv.

The EU hopes to mitigate the risk of increased dependence on Russia by investing in connecting pipelines across European borders.

“The goal is a resilient gas market where gas flows freely across borders,” Gordon said. “For two years, Ukraine hasn’t bought any gas from Russia. Instead they buy gas, Russian gas usually, indirectly from European traders like Germany, like the Dutch. So if the European gas market was in a strong enough state and if Europe was more energy efficient and used less gas, Russian or otherwise, Russia wouldn’t be able to meddle or use gas as a weapon ever again.”

Poland and Lithuania, which vehemently oppose Nord Stream 2, have built terminals for liquefied natural gas, or LNG. The United States wants to boost its LNG exports to Europe.

Both Europe and the U.S. hope that a diversified supply will help reduce Russia’s ability to use gas as a political weapon.

US Senators Ask Vote Machine Vendors about Russian Access to Source Code

Two Democratic senators on Wednesday asked major vendors of U.S. voting equipment whether they have allowed Russian entities to scrutinize their software, saying the practice could allow Moscow to hack into American elections infrastructure.

The letter from Senators Amy Klobuchar and Jeanne Shaheen followed a series of Reuters reports saying that several major global technology providers have allowed Russian authorities to hunt for vulnerabilities in software deeply embedded across the U.S. government.

The senators requested that the three largest election equipment vendors — Election Systems & Software, Dominion Voting Systems and Hart Intercivic — answer whether they have shared source code, or inner workings, or other sensitive data about their technology with any Russian entity.

Trump Sells Tax-Cut Package to Hispanic Business Owners

President Donald Trump is selling Hispanic business owners on his new tax cuts.

Trump is delivering the keynote address Wednesday at the annual legislative summit of the Latino Coalition. It’s his first time addressing Hispanic business owners.

The president says the $1.5 trillion package of tax cuts he signed late last year have finally given American business a “level playing field.” He tells the Latino business owners that they’ll “see more of this in the coming weeks.”

Trump highlighted administration efforts to eliminate regulations that many businesses find burdensome.

Trump also touched on immigration. He blamed Democrats for failing to reach agreement with the White House on a plan to protect immigrants who were brought to the country illegally as children.

IMF, European Leaders Rebuke Trump on Planned Tariff Increases

The International Monetary Fund and European leaders pushed back Wednesday against U.S. President Donald Trump’s plan to impose steep tariffs on steel and aluminum imports, saying it would provoke a calamitous global trade war.

IMF chief Christine Lagarde told a European radio interviewer, “If international trade is called into question by these types of measures, it will be a transmission channel for a drop in growth, a drop in trade and it will be fearsome. In a trade war that will be fed by reciprocal increases of customs tariffs, no one wins.”

Lagarde said the IMF is “anxious” that U.S. tariff increases not be imposed, saying, “We are urging the sides to reach agreements, hold negotiations, consultations.”

Trump boasted last week that trade wars “are good and easy to win” after he announced plans for a 25 percent U.S. tariff on steel imports and a 10 percent levy on aluminum exported to the United States.

The proposal has drawn widespread criticism from his normal Republican colleagues in Congress and U.S. foreign allies, but support from economic nationalists in the United States and a handful of Democratic lawmakers in manufacturing states whose fortunes could be boosted by the tariffs protecting their metal industries.

EU retaliation

European Council President Donald Tusk rebutted Trump’s contention about trade conflicts, saying, “The truth is quite the opposite: Trade wars are bad and easy to lose. For this reason I strongly believe that now is the time for politicians on both sides of the Atlantic to act responsibly.”

The European Commission, the executive arm of the 28-nation European Union, detailed retaliatory tariffs it plans to impose on prominent U.S. products if Trump carries out his plan to impose the metal tariffs, taxing Harley-Davidson motorcycles, bourbon, blue jeans, cranberries, orange juice and peanut butter.

Trump has claimed the United States needs to impose the steel and aluminum tariffs to protect its national security, but European Trade Commissioner Cecilia Malmstroem dismissed his rationale.

“We cannot see how the European Union, friends and allies in NATO, can be a threat to international security in the U.S.,” Malmstroem said. “From what we understand, the motivation of the U.S. is an economic safeguard measure in disguise, not a national security measure.”

Denmark Foreign Minister Anders Samuelsen said if a trade war starts between the United States and the European Union, “at the end of the day, European and American consumers will pay for it. That is the signal we have to send to Trump that it is not a path we should follow.”

Moody’s Investors Service said the planned tariffs “raise the risk of a deterioration in global trade relations.”

Despite the criticism, White House Press Secretary Sarah Huckabee Sanders said Trump is “on track” to make the formal announcement on the tariffs by the end of the week.

Cutting the trade deficit

Trump said on Twitter that since former President George H.W. Bush was in the White House 30 years ago, “our Country has lost more than 55,000 factories, 6,000,000 manufacturing jobs and accumulated Trade Deficits of more than $12 trillion.”

Trump claimed the United States last year had a trade deficit of “almost $800 billion,” significantly overstating the actual figure of $566 billion, which still was the biggest U.S. trade deficit in nine years. A new report Wednesday said the U.S. trade deficit in January – the amount its imports exceeded its exports – reached $56.6 billion, the highest monthly total since October 2008.

“Bad Policies & Leadership. Must WIN again!” Trump said.

In another tweet, Trump said the United States has asked China “to develop a plan for the year of a One Billion Dollar reduction in their massive Trade Deficit with the United States. Our relationship with China has been a very good one, and we look forward to seeing what ideas they come back with. We must act soon!”

U.S. Commerce Secretary Wilbur Ross said the planned steel and aluminum tariffs were “thought through. We’re not looking for a trade war.”

He said the Trump administration could take a “surgical approach” to new tariffs, exempting some countries, specifically Canada and Mexico, if revisions are reached in the ongoing negotiations over changes in the 1994 North American Free Trade Agreement.

Ross added that it is “not inconceivable that others could be exempted on a similar basis.”

Stocks prices fell in the U.S. markets with the turmoil over the tariffs and the resignation Tuesday of Gary Cohn, Trump’s chief economic adviser, an economic globalist who had opposed the steel and aluminum tariffs, but lost the internal White House debate.

The Dow Jones Industrial Average of 30 key stocks dropped a half percentage point in early Wednesday trading and other markets dropped too.

Trump promised to quickly replace Cohn, saying, “Many people wanting the job — will choose wisely!”

China, Russia Mounting Growing Challenge to US in Africa

China and Russia are working to expand their influence across Africa, hoping to outspend or out-compete the United States, U.S. officials warn, describing it as part of a larger effort by both countries to reshape the world order.

For months, top national security officials have been talking about the reemergence of what they describe as a great power competition, calling out China and Russia as the two countries doing the most to counter the United States.

Officials say the efforts by Beijing and Moscow are both regional and global, with both pursuing strategies to deny the U.S. access to conflict zones in times of crisis and to commercial markets in times of peace.

And in Africa, both are trying to portray themselves as viable, if not essential, alternatives to the United States.

On Tuesday, the commander of U.S. forces in Africa told lawmakers it is now critical for African countries to know Washington can and will remain a steadfast partner.

“It’s important that we’re there, that we’re present and that the African people see our commitment,” U.S. Africa Command’s Gen. Thomas Waldhauser told the House Armed Services Committee.

China’s expanding influence

Concerns about China’s ever-expanding reach into Africa are not new. U.S. intelligence warned this past September (2017) that Beijing’s first overseas military base, at Doraleh, in the east African nation of Djibouti, was likely to be the first of many.

“China seeks to build [military bases] around the world, creating new areas of intersecting, and potentially conflicting, security interests between China and the United States,” an intelligence official said at the time.

For U.S. Africa Command, perhaps no situation is as concerning as the one in Djibouti, home to Camp Lemonnier, the only permanent U.S. military installation on the African continent and a hub for U.S. counterterror operations.

Gen. Waldhauser described the Chinese military base at Doraleh as, “right outside our gates.” And despite some efforts to work with the Chinese, in areas like medical aid and training, U.S. defense officials remain wary.

“We are not naïve,” said Waldhauser Tuesday. “We are taking significant steps on the counterintelligence side so that we have all the defenses that we need.”

But China’s military might in Africa, including its approximately 2,500 peacekeepers, is not what has U.S. defense, intelligence and diplomatic officials most concerned.

Rather, they point to the way Beijing relies on economic aid and promises of development to bring countries like Djibouti into its sphere of influence.

“The Chinese there are building facilities. They’re building a shopping mall. They built a soccer stadium,” Waldhauser said. “They built the infrastructure for communications in Djibouti.”

“When we talk about influence and access, this is a classic example,” he added. “We’ll never outspend the Chinese.”

U.S. Secretary of State Rex Tillerson on Tuesday went as far as to accuse China of “encouraging dependency” in its approach to the continent.

WATCH:  Tillerson Touts Africa As Key to Global Security

“Chinese investment does have the potential to address Africa’s infrastructure gap but its approach has led to mounting debt and few, if any, jobs in most countries. When coupled with the political and fiscal pressure, this endangers Africa’s natural resources and its long-term economic, political stability,” noted Tillerson in a speech hours before leaving on a five-country African trip.

Other U.S. officials have also raised concerns about the high levels of debt some nations are incurring as they increasingly accept Chinese loans. By some U.S. estimates, Djibouti, which is home to the U.S. military base, owes more than $1.2 billion to Beijing.

That has sparked fears among some U.S. lawmakers that China could make a play to take control of Djibouti’s key port, the Doraleh Container Terminal.

Djibouti took control of the port citing a contract dispute with the former operator, Dubai-based DP World.

“Reports that I’ve read say that they didn’t seize it for purposes of operating it for profit, but that they actually intend to gift it to China,” Republican Representative Bradley Byrne (from Louisiana) said during Tuesday’s hearing with Africa Command’s Gen. Waldhauser.

“The Chinese aren’t there for purely charitable reasons,” Byrne said. “We all would recognize that.”

U.S. defense officials admit that if China does take over the port and decides to impose any restrictions, the consequences could be significant – impacting the military’s ability to refuel ships and to resupply Camp Lemonnier and other outposts across Africa.

Russia’s focus on Africa

Russia, too, is making Africa more of a focus.

Russian Foreign Minister Sergey Lavrov visits Africa this week, starting with a stop in Zimbabwe, where Moscow has been cultivating economic ties, including a $3 billion investment in platinum mining, while also pursuing deeper military ties.

There has also been extensive Russian outreach to northern African nations, particularly countries like Libya which border on the Mediterranean.

“Our concern would be their ability to influence and be on the southern flank of NATO, and also them to kind of squeeze us out, if you will, by them taking a prominent role,” said U.S. Africa Command’s Waldhauser.

Russian officials say they have no plans to back down.

 

“African countries view the development of cooperation in the military and technical sphere as an instrument of ensuring their sovereignty, independence and countering the pressure of Western countries,” Andrei Kemarksy, director of the Russian Foreign Ministry’s Africa Department told the Tass news agency last month.

“We are training both military and police personnel for peacekeeping operations,” Kemarksy added.

 

Zinke Says US Interior Should Be Partner with Oil Companies

Interior Secretary Ryan Zinke says his agency should be a partner with oil and gas companies that seek to drill on public land and that long regulatory reviews with an uncertain outcome are “un-American.”

Speaking Tuesday to a major energy-industry conference, Zinke described the Trump administration’s efforts to increase offshore drilling, reduce regulations, and streamline inspections of oil and gas operators.

“Interior should not be in the business of being an adversary. We should be in the business of being a partner,” Zinke said to a receptive audience that included leaders of energy companies and oil-producing countries.

Shorten permit process

Zinke said the government should shorten the permitting process for energy infrastructure — it shouldn’t take longer than two years.

“If you ask an investor to continuously put money on a project that is uncertain because the permit process has too much uncertainty, ambiguity, (it) is quite frankly un-American,” he said.

The Interior Department manages 500,000 million acres — one-fifth of the U.S. land mass — as well as the lease of offshore areas for oil drilling. One-fifth of U.S. oil production takes place on land or water that the Interior Department leases to private energy companies.

Environmentalists accuse Zinke and the administration of undercutting environmental rules to help oil, gas and coal companies. 

Alex Taurel, a legislative official with the League of Conservation Voters, said Tuesday that Zinke “thinks our public lands are nothing more than an ATM for his industry friends. If anything is un-American, it’s this administration’s persistent attacks on America’s public lands.”

In January, the Trump administration proposed to open up nearly all coastal areas to oil drilling, although Florida was dropped after the Republican governor and lawmakers objected, citing risk to the state’s tourism business.

States have leverage

As he has before, Zinke defended the plan, which faces fierce opposition from governors and lawmakers along the entire West Coast and much of the East Coast.

Zinke said he would listen to local objections, and he noted that states have leverage if they oppose drilling in federal water off their coastlines — they would have to approve pipelines and terminals to handle the oil.

“You can’t bring energy ashore unless you go through state water,” he said.

Zinke said the United States won’t exhaust its resource of fossil fuels in our lifetime, but that cleaner-burning natural gas will take on a bigger role.

Trump ‘a delightful boss’

The Trump administration, he said, is “pro-energy across the board,” and he tried to dismiss an environmental disadvantage to burning fuels that emit carbon linked to climate change. All fuels, he said, have consequences.

When solar facilities are built on public land, people can’t hunt or pursue other recreation there, he said, and wind turbines “probably chop up as many as 750,000 birds a year.”

Zinke acknowledged, however, that “certainly oil and gas and coal have a consequence on carbon.”

Zinke began his comments with a shout-out to his boss, President Donald Trump, calling him “a delightful boss,” before explaining Trump’s goal of encouraging U.S. “energy dominance.” He has frequently criticized former President Barack Obama.

U.S. oil production surged during Obama’s tenure and has kept growing, recently surpassing 10 million barrels a day, thanks to increasing output from shale formations in Texas, North Dakota and elsewhere.

EU Cool Toward British ‘Associate Membership’ in Bloc’s Agencies

The European Union is cool to the idea of Britain’s “associate membership” in various agencies of the bloc as proposed by London to make Brexit less disruptive for British business.

Britain started a process to leave the EU last year because it no longer wants to accept the authority of the European Court of Justice (ECJ) and the free movement of workers, and it does not want to contribute to the EU budget.

But it is keen to keep most of its other links with the EU, especially unfettered access to the EU’s market.

EU officials call this approach “cherry-picking,” where London chooses the areas it wants for closer association but does not accept the obligations linked to it in other areas. 

Last Friday, Prime Minister Theresa May floated the idea of Britain’s remaining an associate member of the European Medicines Agency, the European Chemicals Agency and the European Aviation Safety Agency after Britain leaves the EU in March 2019.

She said London understood this meant abiding by the rules of those agencies and financial contributions. But EU officials involved in the negotiations on the terms of Britain’s exit from the bloc and deciding on the future trade relationship were not impressed.

“It is not so much ‘how’ they participate. That’s a technicality. The bigger question is ‘if’ they should participate. Why would we let them in?” one official said.

“The bottom line is that the U.K. approach is cherry-picking.

“The EU has a vast number of agencies, and I think we’d think twice to let the U.K. ‘associate’ itself with a selected number they choose because they have an interest,” the official said.

Brussels officials pointed out that an “associate membership” — a status that does not exist yet and would have to be created especially for Britain — would not give London the kind of access to the EU single market it sought.

“It is not possible to accept ECJ oversight in only some segments of business in the EU and not in others,” a second EU official said. “The single market is not made of bits and pieces you can pick and choose.”

An “associate membership” status would also likely involve complex legal work in the EU to create it.

“The willingness to change regulations in order to accommodate the U.K.’s wishes … is limited because it entails lengthy legislative procedures,” a third official said.

The chairman of EU leaders, Donald Tusk, will present draft guidelines for the EU’s future trade deal with Britain in Luxembourg on Wednesday.

‘Freedom implies responsibility’

The closest to an “associate membership” the EU has now is with countries in the European Economic Area but not EU members — Norway, Liechtenstein and Iceland — which can take part in meetings, but they do not have voting rights.

Michel Barnier, the EU’s chief Brexit negotiator, said last November that the work of the EU agencies was based on EU laws, which Britain no longer wants to accept and should then go on and build its own.

“The same people who argue for setting the U.K. free also argue that the U.K. should remain in some EU agencies. But freedom implies responsibility for building new U.K. administrative capacity,” Barnier said.

“On our side, the 27 will continue to deepen the work of those agencies, together. They will share the costs for running those agencies. Our businesses will benefit from their expertise. All of their work is firmly based on the EU treaties, which the U.K. decided to leave,” he said.

May argued in her speech last week that every trade agreement, which focused on some aspects of an economy more than on others, was some form of “cherry-picking.”

“With all its neighbors the EU has varying levels of access to the single market, depending on the obligations those neighbors are willing to undertake,” she said.

“What would be cherry-picking would be if we were to seek a deal where our rights and obligations were not held in balance. And I have been categorically clear that is not what we are going to do,” she said.

But EU officials said that Britain would get the trade agreement it sought with the EU only if it agreed to balance the rights and obligations in a way that would not pick apart the EU single market.

The bloc would also have to make sure that the deal is less attractive than EU membership.

“Nobody asked after the EU trade agreement with Canada, or Korea: ‘Why can’t we be like Canada or Korea?’ The point is that also after Brexit, nobody should ask themselves: ‘Why can’t we be like Britain?’ ” the second official said.

Vatican Signals Concern Over Populist Rise in Italy Elections

The Vatican on Tuesday signaled its concern over the results of Italy’s national election, which saw sharp gains for populist and anti-immigrant parties.

The biggest winners were the League — the largest party in a center-right grouping that employed the most fiery anti-migrant rhetoric during the campaign — and the anti-establishment 5-Star Movement.

Cardinal Pietro Parolin, the Vatican’s Secretary of State, was asked on the sidelines of a conference on immigration if the Holy See was worried about the results.

“The Holy See has to work in whatever conditions arise. We can’t (always) have the society that we would like to have, or the conditions that we would like to have,” he told the Catholic news agency SIR.

It was the Vatican’s first public reaction to the results and its most authoritative because Parolin, its top diplomat, ranks second only to Pope Francis in the Holy See’s hierarchy.

During the campaign, League leader Matteo Salvini clashed with the pope several times over immigration.

When Francis backed a proposed law that would have granted Italian citizenship to children born in Italy of immigrant parents — something the League vehemently opposed — Salvini said Francis could house the children in the Vatican if he wanted to.

Political squabbling blocked discussion of the law before parliament was dissolved ahead of the elections.

Salvini also criticized the pope for promoting dialogue with Islam. Many of the Africans who made the dangerous crossing of the Mediterranean to reach Italy are Muslim.

Parolin said at the conference that the Vatican realized that the election results meant it would have to continue “a work of education” about the dignity and rights of immigrants.

Surveys show Italians are increasingly uneasy after more than 600,000 migrants reached Italy by boat in four years. Last month, a neo-Nazi wounded six migrants in a shooting spree in central Italy.

“Citizens must feel safe and protected but at the same time we can’t slam doors in the faces of people who are fleeing violence and threats,” Parolin said.

The pope, who was born in Argentina of Italian immigrant stock, has championed the cause of migrants since taking office in 2013.

Last year he called for a radical change of attitude towards immigrants, saying they should be welcomed with dignity and denouncing the “populist rhetoric” he said was fueling fear and selfishness in rich countries.

The center-right has vowed to deport hundreds of thousands of migrants if they are able to form a government. 5-Star has also vowed to step up deportations of illegal immigrants.

21 Libyan Migrants Feared Drowned in Bid to Reach Italian Shores 

At least 21 Libyan migrants who were trying to make the dangerous Mediterranean Sea journey to Italy late last week are missing and feared drowned. 

The U.N. migration agency said Tuesday that they were part of a large group who had set off from Libya aboard a wooden boat and a rubber dinghy and had to be rescued at sea.

Survivors said there was a panic on one of the vessels and people fell overboard, but the details of what happened were unclear.

The Libyan Coast Guard returned some to Libya while a Cypriot commercial ship picked up others. They arrived at the Italian port of Pozzallo on Tuesday.

The number of migrants trying to reach European Union nations from Libya is down substantially from the same time last year, in part because of an agreement between Libya and Italy to immediately return most of those picked up at sea.

U.N. migration officials said 421 people had died trying to sail to Italy so far this year, compared with 521 at the same time in 2017.

But they said more than 100 had died trying to reach Spain in an equally dangerous western sea journey.

Plan to Open Drilling Off Pacific Northwest Draws Opposition

The Trump administration’s proposal to expand offshore drilling off the Pacific Northwest coast is drawing vocal opposition in a region where multimillion-dollar fossil fuel projects have been blocked in recent years.

 

The governors of Washington and Oregon, many in the state’s congressional delegation and other top state officials have criticized Interior Secretary Ryan Zinke’s plan to open 90 percent of the nation’s offshore reserves to development by private companies.

 

They say it jeopardizes the environment and the health, safety and economic well-being of coastal communities.

 

Opponents spoke out Monday at a hearing that a coalition of groups organized in Olympia, Washington, on the same day as an “open house” hosted by the Bureau of Ocean Energy Management.

Attorney General Bob Ferguson told dozens gathered — some wearing yellow hazmat suits and holding “Stop Trump’s Big Oil Giveways” signs — that he will sue if the plan is approved.

 

“What this administration has done with this proposal is outrageous,” he said.

 

Oil and gas exploration and drilling is not permitted in state waters.

 

In announcing the plan to vastly open federal waters to oil and gas drilling, Zinke has said responsible development of offshore energy resources would boost jobs and economic security while providing billions of dollars to fund conservation along U.S. coastlines.

 

His plan proposes 47 leases off the nation’s coastlines from 2019 to 2024, including one off Washington and Oregon.

 

Oil industry groups have praised the plan, while environmental groups say it would harm oceans, coastal economies, public health and marine life.

 

Washington Gov. Jay Inslee met with Zinke over the weekend while in D.C. for the National Governors Association conference and again urged him to remove Washington from the plan, Inslee spokeswoman Tara Lee said Monday.

 

There hasn’t been offshore oil drilling in Washington or Oregon since the 1960s.

 

There hasn’t been much interest in offshore oil and gas exploration in recent decades though technology has improved, said Washington’s state geologist David Norman.

 

“It’s a very active place tectonically. We have a really complicated tough geology. It’s got really rough weather,” Norman said.

 

There’s more potential for natural gas than oil off the Pacific Northwest, said BOEM spokesman John Romero. A 2016 assessment estimates undiscovered recoverable oil at fractions of the U.S. total.

 

Proponents have backed the idea as a way to provide affordable energy, meet growing demands and to promote the U.S.’s “energy dominance.” Emails to representatives with the Western States Petroleum Association and the American Petroleum Institute were not immediately returned Monday.

 

Sixteen members of Washington and Oregon’s congressional delegation last month wrote to Zinke to oppose the plan, saying gas drilling off the Northwest coastline poses a risk to the state’s recreational, fishing and maritime economy.

Kyle Deerkop, who manages an oyster farm in Grays Harbor for Oregon-based Pacific Seafood, worried an oil spill would put jobs and the livelihood of people at risk.

 

“We need to be worried,” he said in an interview, recalling a major 1988 oil spill in Grays Harbor. “It’s too great a risk.”

 

Tribal members, business owners and environmentalists spoke at the so-called people’s hearing Monday organized by Stand Up To Oil coalition.

 

The groups wanted to allow people to speak into a microphone before a crowd because the federal agency’s open house didn’t allow that. Instead the open house allowed people to directly talk to staff or submit comments using laptops provided.

US Trade Representative Says Progress Slow at NAFTA Talks

If Mexico, the U.S. and Canada don’t renegotiate the North American Free Trade Agreement in two months, Washington might put the talks on the back burner until after a new Mexican president is elected or takes office, U.S. trade representative Robert Lighthizer said Monday.

 

He spoke after the seventh round of renegotiation talks wrapped up in Mexico City with little progress reported.

 

“The window is fairly short. It’s not like we can do this in my judgment, at the end of May and think we can get anything done,” Lighthizer said. “It’s not irrational to think you would have lower speed talks at some point, just to keep the talks going … and wait until after the elections,” referring to Mexico’s July 1 presidential election.

 

“The question is: ‘Til when? When do you start up — after the election, or do you start up after the new president is in place and has his own people in place,” Lighthizer said.

 

He said the latest talks produced agreement on only three of the 27 remaining NAFTA chapters, including health and sanitation, transparency and regulatory practices.

 

Lighthizer said progress had been slower than hoped, and noted it might be harder to get any deal through the U.S. Congress after November.

 

“There is some possibility that the Democrats will take over the Congress, and even if that doesn’t happen, they’ll be a different makeup of Congress for sure,” he said.

 

Since renegotiations began, agreement has been reached on only six of NAFTA’s 30 chapters, and big differences remain on issues like regional and U.S. content in autos, and dispute resolution panels.

 

The U.S. threw a new issue into the talks when President Donald Trump announced new duties on aluminum and steel imports — but then said Mexico and Canada would be exempted from the tariffs if NAFTA were successfully renegotiated.

 

Lighthizer denied that was a strong-arm tactic meant to exert additional pressure on Canada and Mexico.

 

“This is just a total coincidence,” he said regarding the timing of the new tariffs.

 

Nor was it a threat, Lighthizer said. “I certainly presented it as a positive thing … It’s my view that it’s an incentive to get a deal.”

 

Lighthizer said that “at this point our objective is still to have a trilateral agreement,” but noted that the Trump administration is “prepared to move on a bilateral basis” with either Canada or Mexico.

With Gas and Diplomacy, Russia Embraces Cold War Foe Pakistan

As U.S. influence in Islamabad wanes, Pakistan’s former adversary Russia is building military, diplomatic and economic ties that could upend historic alliances in the region and open up a fast-growing gas market for Moscow’s energy companies.

Russia’s embrace of Pakistan comes at a time when relations between the United States and its historical ally are unravelling over the war in Afghanistan, a remarkable turnaround from the 1980s, when Pakistan helped funnel weapons and U.S. spies across the border to aid Afghan fighters battling Soviet troops.

Though the Moscow-Islamabad rapprochement is in its infancy, and it is neighbor China that is filling the growing void left by the United States in Pakistan, a slew of energy deals and growing military cooperation promise to spark life into the Russia-Pakistan relationship that was dead for many decades.

“It is an opening,” Khurram Dastgir Khan, Pakistan’s defense minister, told Reuters. “Both countries have to work through the past to open the door to the future.”

Watching Islamic State

The cosier diplomatic ties have so far focused on Afghanistan, where Russia has cultivated ties to the Afghan Taliban militants who are fighting U.S. troops and have historic links to Islamabad. Moscow says it is encouraging peace negotiations.

Both Russia and Pakistan are also alarmed by the presence of Islamic State (IS) inside Afghanistan, with Moscow concerned the group’s fighters could spread towards central Asia and closer to home. In Pakistan, IS has already carried out major attacks.

“We have common ground on most issues at diplomatic levels,” Pakistan’s Prime Minister Shahid Khaqan Abbasi told Reuters. “It’s a relationship that will grow substantially in the future.”

During a trip to Moscow last month by Pakistan’s foreign minister, Khawaja Asif, the two countries announced plans to establish a commission on military cooperation to combat the threat of IS in the region.

They also agreed to continue annual military training exercises that began in 2016 and followed the sale of four Russian attack helicopters to Pakistan, as well as the purchase of Russian engines for the Pakistan Air Force’s JF-17 fighter jets that Pakistan’s military assembles on its own soil.

India voices concern

The detente has been watched with suspicion by Pakistan’s neighbor and arch-foe India, which broadly stood in the Soviet camp during the Cold War era. In the last two decades, the close Russia-India relationship has been underpinned by huge arms sales by Moscow to a country it calls a “strategic partner.”

“If the Russians start backing the Pakistanis in a big way at the political level, then it creates a problem for us,” said Sushant Sareen, a leading expert on India’s relations to Pakistan and Afghanistan with New Delhi-based Observer Research Foundation.

India’s foreign ministry did not respond to a request for comment on Russia’s ties with Pakistan, but has previously said that its own relations with Moscow have stood the test of time, and that the two nations are building up defence and energy relations, including collaboration on nuclear reactors in India.

Pivoting east

Russian overtures to Pakistan offer a badly needed diplomatic lifeline for the South Asian nation as it faces growing friction with Western powers over its alleged links to militants.

At U.S. urging, and with backing from Britain, France and Germany, a global financial watchdog, the Financial Action Task Force (FATF), last month decided to place Pakistan back on its watchlist of countries with inadequate terrorist-financing controls, potentially hurting Pakistan’s fragile economy.

The U.S. move, which Islamabad angrily dismissed as an effort to “embarrass” Pakistan, followed Washington’s announcement in January to suspend $2 billion in military assistance.

Asif, Pakistan’s foreign minister, said his nation made a historical error by “tilting 100 percent” to the West and was now eager build alliances closer to home with the likes of China, Russia and Turkey.

“We want to correct the imbalance of our foreign policy over 70 years,” Asif told Reuters. “We are not divorcing that relationship (with the West). But we want to have a balance in our relationships, we want to be closer to our friends in our region.”

Defense minister Khan said Pakistan’s military, which has historically been heavily reliant on U.S. weapons and aircraft, may have no choice but to ramp up purchases from the likes of Russia.

Cooling relationship

The cooling relationship with Washington is already pushing Islamabad closer to China, which is investing about $60 billion in infrastructure in Pakistan. But analysts say Pakistan is wary of becoming overly dependent diplomatically on Beijing.

Pakistan is among several nations that have been courted by Moscow after falling out with Washington, including the Philippines and Qatar, but Russia’s long-term aims for the Pakistan relationship are unclear, according to Petr Topychkanov, a senior researcher at the Stockholm International Peace Research Institute.

“It’s not very transparent, even in Russia,” he said. “There is no serious public debate, there is no detailed explanation to the Russian public about what Russia wants in Pakistan.”

Russia’s foreign ministry did not immediately respond to a request for comment about Moscow’s increasingly close relations with Pakistan.

Huge power projects

Russia and Pakistan are negotiating potential energy deals worth in excess of $10 billion, according to Pakistani energy officials.

Asif said four to five huge power projects “will cement our relationship further.”

Russia last month appointed an honorary council in the Pakistan’s northern Khyber Pukhtunkhwa province, where its companies are in talks to build an oil refinery and a power station.

But the biggest deals focus on gas supply and infrastructure to Pakistan, one of the world’s fastest growing liquefied natural gas (LNG) import markets.

“On a strategic basis, Russia is coming in very fast on the energy side,” said a senior Pakistani energy official.

In October, Pakistan and Russia signed an inter-governmental agreement (IGA) on energy, paving the way for Russian state-giant Gazprom to enter negotiations to supply LNG to Pakistan.

The talks are expected to conclude within three months and Gazprom is considered “one of the front-runner” to clinch a long-term supply deal, according to the Pakistani official.

$9 billion deal

Based on two monthly LNG cargo deliveries, that deal would be worth about $9 billion over 15 years, he added.

There is also growing confidence that a gas pipeline due to be built by Russia, stretching 1,100 km (680 miles) from Lahore to the port city of Karachi, will go ahead.

U.S. sanctions against Russian state conglomerate Rostec, as well as a dispute over North-South pipeline transport fees, have held up the $2 billion project since it was signed in 2015.

The North-South pipeline would be the biggest infrastructure deal by Russia since early 1970s, when Soviet engineers constructed the Pakistan Steel Mills industrial complex.

A Russian company, according to defense minister Khan, is eying up a deal to take over the disused Soviet-built steel mills.

WTO Chief Urges States to Stop First Dominoes of Trade War

The head of the World Trade Organization told member states on Monday they must prevent “the fall of the first dominoes” in a trade war and warned of a real risk of triggering an escalation of global trade barriers and a deep recession.

World trade policy is in turmoil because of U.S. President Donald Trump’s announcement last week that he planned to put controversial tariffs on steel and aluminum, prompting threats of tit-for-tat actions and concerns for the trade system itself.

“We must make every effort to avoid the fall of the first dominoes. There is still time,” WTO Director General Roberto Azevedo told the heads of WTO delegations at a closed-door meeting in Geneva.

“In light of recent announcements on trade policy measures, it is clear that we now see a much higher and real risk of triggering an escalation of trade barriers across the globe,” Azevedo said, according to a copy of his statement released by the WTO.

Azevedo is normally very conservative in remarks about WTO members’ trade policies, but he also plays a role as a guardian of the global trading rules, a bulwark against protectionism.

On Friday he broke his silence on Trump’s tariff plan, expressing concern and saying a trade war would be in nobody’s interest.

In his statement at Monday’s meeting, he did not name any one country but sounded a more urgent warning.

“Once we start down this path it will be very difficult to reverse direction. An eye for an eye will leave us all blind and the world in a deep recession,” Azevedo said.

Trade officials said that many diplomats at the meeting voiced concern about protectionism, and 11, including the 28-state European Union, expressed very strong concerns about Trump’s announcement on Thursday specifically.

As well as the EU, Mexico, Japan, Australia, China, South Korea, Brazil, Norway, Canada, India and Venezuela all warned of the knock-on effect of Trump’s action and urged the United States to think again.

Trade officials said the U.S. representative at the meeting, originally called to discuss a recent ministerial conference in Argentina, spoke only about the original agenda without mentioning the furor over the U.S. tariff plan.

Merkel: Germany to Start Work on Trade, China, Syria War

Chancellor Angela Merkel said on Monday she would work with France to tackle pressing issues such as trade policy, the war in Syria and competition with China after the Social Democrats (SPD) approved joining a coalition with her conservatives.

Merkel welcomed the vote by a clear majority of SPD members that ended more than five months of political deadlock after an inconclusive election, and she said the right-left government must quickly get to work.

“What we’re seeing and hearing every day is that Europe needs to step up and Germany needs to have a strong voice there along with France and other member states [of the European Union],” said Merkel during a brief statement to reporters.

Priorities included international trade policy, on which many jobs in Europe’s largest economy depend, ensuring open competition with China and dealing with the “scary situation” in Syria.

“It is important that we start working as soon as possible,” Merkel said.

U.S. President Donald Trump last week stunned his European allies with plans to put tariffs on steel and aluminum imports, triggering a warning by the European Union that it would retaliate with counter-measures.

Sunday’s SPD vote result brought relief to German businesses and European capitals, which say the euro zone would benefit from Merkel being able to partner with French President Emmanuel Macron on ambitious plans to reform the single currency bloc.

But discord within the coalition could hamper Merkel’s ability to tackle challenges like eurozone reforms, Trump’s protectionist policies, and China’s rising dominance. The war in Syria, which could result in more refugees arriving in Germany, is also a prime concern.

Both Merkel’s conservatives and the SPD are under pressure to appear distinctive to voters in a coalition borne out of necessity rather than choice, making it difficult for Merkel to balance conflicting demands.

More than 6 in 10 Germans said in a poll published Monday they believe the coalition will serve a full four-year term.

And more than 56 percent of Germans believe Merkel will serve the full four years, a separate poll conducted for the Bild newspaper showed.

Former Greens Foreign Minister Joschka Fischer urged the coalition to speed up eurozone reforms and digitalization, saying that Europe risked losing out politically and economically as China accelerated its technology developments.

“I hope they step on the gas pedal, when it comes to Europe. It’s a very un-Green demand, I know, but in this case, it’s warranted,” he told reporters.

‘No opposition in government’

Senior conservative Jens Spahn, seen as one possible successor to Merkel, warned the SPD not to obstruct government policy in a rerun of the coalition that has ruled since 2013.

Spahn, a champion of the right in Merkel’s Christian Democrats (CDU), told Deutschlandfunk radio: “The SPD must decide: Either we rule together or some will try to play opposition within the government.”

SPD leaders, under pressure to revive their party after suffering their worst result in September’s election since Germany became a federal republic in 1949, have vowed to fight the conservatives on major issues.

SPD secretary general Lars Klingbeil said his party wants the government, expected to be in place this month, to make social issues such as pensions, education and family policy and strengthening rural areas, its top priority.

But Volker Kauder, parliamentary leader of the conservatives, said his bloc would focus on curbing immigration.

Despite agreeing on broad policy outlines, the two blocs are divided on how to implement policies on immigration, car emissions, labor rules and welfare.

Merkel also faces the challenge of easing tensions within her own conservative bloc, comprising her CDU party and their Christian Social Union (CSU) Bavaria-based partners.

The CSU on Monday spoiled her election pledge to have a cabinet equally split among men and women by naming three male politicians to the transport, development and interior posts.

Deputy SPD leader Malu Dreyer told the RND newspaper chain the CSU move was “disappointing” 100 years after women gained the right to vote.

The CDU have appointed three men and three women to fill their six cabinet posts under the coalition agreement and the SPD are expected to do the same. This means that the 16-strong cabinet, including Merkel, will have seven women and nine men.

Merkel was weakened by her 2015 decision to welcome hundreds of thousands of people seeking asylum, which helped fuel the rise of a far-right party that stole conservative voters.

In power since 2005, she has led Germany and the EU through the financial and debt crises, but her waning authority at home could complicate efforts to deepen integration in the eurozone.