When the heaviest rain of tropical storm Harvey had passed, Kathryn Clark’s west Houston neighborhood had escaped the worst. Then the dams were opened — a decision by the U.S. Army Corps of Engineers to prevent upstream flooding and potential dam failures by releasing water into Buffalo Bayou, just a few hundred feet from the end of Clark’s street.

When she and her husband returned to survey the damage later that week, they entered their two-story home by kayak in roughly three feet of water. In the kitchen, a snake slithered past.

Nothing like that had happened in the nearly 11 years the Clarks have lived there; it got Kathryn thinking about their long-term plans, including whether to rebuild.

“What if they decide to open the dams again?” she asked. “But if you don’t rebuild, you just walk away, and that is a big loss.”

The Clarks ultimately opted to reconstruct, a process that will take another half-year before they can move back in. Elsewhere in the city, the waiting will be longer.

​A sprawling concrete jungle

In early November, Texas Governor Greg Abbott told reporters that Texas will need more than $61 billion in federal aid, to help fund a reconstruction plan that he said would curtail damage from future coastal storms. However, he added, there will be more requests: “This is not a closed book.”

Hurricane Harvey, the costliest storm in U.S. history, will affect Houston for months, and years. Apart from tens of thousands of ongoing home rebuilding projects, civil construction is in the evaluation phase.

“With Katrina, it actually took them 12 years before FEMA [Federal Emergency Management Agency] made their final payment to the city of New Orleans,” said Jeff Nielsen, executive vice president of the Houston Contractors Association. “That’s how long it takes to really test and figure out where all the repairs and where all the damage occurred.”

Houston covers a landmass of 1,600 square kilometers, compared to New Orleans’ 900, and is much more densely populated. The impermeable concrete jungle experienced major runoff during the storm, and that translates to high civil construction costs in roads, bridges, water, sewage and utility lines that are difficult to determine.

WATCH: Post-Harvey Houston: Years Until Recovery, Unknown Costs

Nielsen explains to VOA the immensity of the task. 

“You may be driving down the road one day and, all of a sudden — boom — there is a 10-foot sinkhole underneath the road because there is a water line or a sewer line or a storm sewer line that runs underneath that road.

“There is no way to tell that that’s happening without going through and testing each and every line,” Nielsen said.

​Waiting, waiting

Rob Hellyer, owner of Premier Remodeling & Construction, says Houston has seen an uptick in inquiries for both flood and nonflood-related projects — good for business, but a challenge for clients.

“A lot of those people come to the realization that ‘If we want to get our project done in the next two or three years, we better get somebody lined up quick,’” Hellyer told VOA.

But industrywide, much of the workforce is dealing with flooding issues of their own, while simultaneously attempting to earn a living.

“It really has disbursed that labor pool that we have been using for all these years,” Hellyer said.

Labor shortages in construction-related jobs have long been a challenge despite competitive wages, according to Nielsen, who describes his field — civil construction — as less-than-glamorous.

“Outside, it’s hot. What could be more fun than pouring hot asphalt on a road?” he asked.

Networking barriers

With construction costs up and waiting periods long, the hands-on rebuilding effort is typically attractive for some lower-wage immigrant communities.

Among the city’s sizable Vietnamese population, though, that’s not exactly the case, said Jannette Diep, executive director of Boat People SOS Houston office (BPSOS), a community organization serving the area’s diaspora population.

“[Vietnamese construction workers] face not only a language barrier but that networking piece, because they’re not intertwined with a lot of the rules and regulations,” Diep said. “‘Well, how do I do the bid; what’s the process?’”

Overwhelmed with paperwork and often discouraged by limited communication skills in English, Diep says many within the industry opt to work only from within their own communities, despite more widespread opportunities across Greater Houston.

The same barriers apply to the Asian diaspora’s individual post-recovery efforts. BPSOS-Houston, according to Diep, remains focused on short-term needs — food, clothing, cleaning supplies — and expects the longer-term recovery to take two to three years, particularly in lower-income neighborhoods.

Love thy neighbor

Loc Ngo, a mother of seven and grandmother from Vietnam, has lived in Houston for 40 years, but speaks little English. In Fatima Village, a tightly knit single-street community of mobile homes — comprising 33 Vietnamese families — she hardly has to.

“They came to fix the home and it cost $11,000, but they’re not finished yet,” she explained, through her son’s translation. “The washer, dryer and refrigerator — I still haven’t bought them yet, and two beds!”

Across the street, the three-generation Le family levels heaps of dirt across a barren lot that’s lined by spare pipes and cinderblocks. They plan to install a new mobile home.

At the front end of the road is the village’s single-story church, baby blue and white, like the sky — the site of services, weddings, funerals and community gatherings.

Victor Ngo, a hardwood floor installer, typically organizes church events. But for now, his attention is turned to completing reconstruction of the altar and securing donations to replace 30 ruined benches.

“At first I had to spend two months to fix up my house, and now I finished my house, and I [have started] to fix up this church,” Ngo said. “So basically, I don’t go out there to work and make money. Not yet.”

In the village, made up largely of elders, Ngo stresses the importance of staying close to home to help with rebuilding, translation, and paperwork, at least for a while longer.

“We stick together as a community to survive,” he said.
…

Pro-trade Republicans in the U.S. Congress are growing worried that U.S. President Donald Trump may try to quit the NAFTA free trade deal entirely rather than negotiate a compromise that preserves its core benefits.

As a fifth round of talks to modernize the North American Free Trade Agreement kicked off in Mexico on Friday, several Republicans interviewed by Reuters expressed concerns that tough U.S. demands, including a five-year sunset clause and a U.S.-specific content rule, will sink the talks and lead to the deal’s collapse.

Business groups have warned of dire economic consequences, including millions of jobs lost as Mexican and Canadian tariffs snap back to their early 1990s levels.

“I think the administration is playing a pretty dangerous game with this sunset provision,” said Representative Charlie Dent, a moderate Republican from eastern Pennsylvania.

He said putting NAFTA under threat of extinction every five years would make it difficult for companies in his district, ranging from chocolate giant Hershey Co to small family owned manufacturing firms, to invest in supply chains and manage global operations.

Hershey operates candy plants in Monterrey and Guadalajara, Mexico.

Lawmakers’ letter

Nearly 75 House of Representatives members signed a letter this week opposing U.S. proposals on automotive rules of origin, which would require 50 percent U.S. content in NAFTA-built vehicles and 85 percent regional content.

They warned that this would “eliminate the competitive advantages” that NAFTA brings to U.S. automakers or lead to a collapse of the trade pact.

Representative Pete Sessions, a Texas Republican who has long been a supporter of free trade deals, said he disagreed with the Trump approach of “trying to beat someone” in the NAFTA talks. Texas is the largest U.S. exporting state with nearly half of its $231 billion in exports last year headed to Mexico and Canada, according to Commerce Department data.

“We need to offer Mexico a fair deal. If we want them to take our cattle, we need to take their avocados,” Sessions said.

Still, congressional apprehension about Trump’s stance is far from unanimous. The signers were largely Republicans, with no Democrats from auto-intensive states such as Michigan and Ohio signing.

Democratic support

Some pro-labor Democrats have actually expressed support for U.S. Trade Representative Robert Lighthizer’s tough approach.

“Some of those demands are in tune,” said Representative Bill Pascrell of New Jersey, the top Democrat on the House Ways and Means trade subcommittee.

“We don’t want to blow it up, Republicans don’t want to blow it up. But we want substantial changes in the labor, the environmental, the currency, on how you come to an agreement when there’s a dispute, and on problems of origin.”

Farm state Republicans are especially concerned that a collapse of NAFTA would lead to the loss of crucial export markets in Mexico and Canada for corn, beef and other products.

Senator Chuck Grassley of Iowa said Lighthizer in a recent meeting agreed that a withdrawal from NAFTA would be hard on U.S. agriculture, which has largely benefited from the trade pact.

U.S. agricultural exports to Canada and Mexico quintupled to about $41 billion in 2016 from about $9 billion in 1993, the year before NAFTA went into effect, according to U.S. Commerce Department data.

Grassley said, however, that Lighthizer’s approach was “taking everybody to the brink on these talks.”

Other Republicans are taking a wait-and-see approach to the talks.

Representative Frank Lucas of Oklahoma said he was willing to give Trump “the benefit of the doubt” on NAFTA talks, adding that farmers and ranchers in his rural district were strong Trump supporters in the 2016 election.

“The president’s a practical fellow. When push comes to shove, he understands the base,” Lucas said.
…

The head of Canada’s biggest private-sector union headed to Mexico’s Senate on Friday, promising to fight at the NAFTA trade pact talks for improved Mexican wages and free collective bargaining as a way of benefiting workers across North America.

The issue of tougher labor standards has emerged as a key sticking point in the talks to update the North American Free Trade Agreement, and has brought disparate groups of workers from across the region closer to U.S. populists.

“There will not be an agreement” until the Mexican team agrees to free collective bargaining, the elimination of so-called yellow unions that are dominated by employers, and fair wages for Mexican workers, Unifor President Jerry Dias said.

The event held in a side chamber of the Senate was organized by the umbrella organization Better Without Free Trade Agreements, which represents dozens of social organizations and unions.

Dias argued that low wages have not only hurt Mexican workers but have also prompted manufacturing jobs in Canada and the United States to leave for Mexico.

By including much tougher labor standards in an updated NAFTA, the issue could be dealt with head on, he said. “When you start talking about low wages, we can deal with that under the dispute mechanism as an unfair subsidy.”

The fifth round of talks NAFTA is being held in the upscale Camino Real hotel in Mexico City.

“What Mexico offers in this negotiation and to the rest of the world is cheap labor. That’s what Mexico puts on the table and how it presents itself as an attractive place for investments,” Senator Mario Delgado of the leftist Party of the Democratic Revolution told Reuters.

“It is a shame and it is unsustainable for Mexico. … Our salary policy is putting at risk the existence of the treaty,” said Delgado.

Mexican business leaders argue that integrating Mexico into North American supply chains has made the entire region more competitive. Recent studies have shown, however, that wages in Mexico have experienced significant downward pressure.

Given Mexico’s higher inflation rates, wages are now lower there in real terms than when NAFTA took effect, according to a report published in August by credit rating agency Moody’s.

While formally employed workers earn significantly more, the statutory minimum wage is a mere 80 pesos ($4.23) a day.
…

The Trump administration on Friday revised its negotiating objectives for revamping the North American Free Trade Agreement, largely to reflect the demands it has made in NAFTA talks on agriculture, intellectual property and investment.

The revised objectives are now in line with U.S. proposals to eliminate Canada’s import tariffs on dairy, poultry and egg products and to allow more protections for seasonal U.S. produce that is sensitive to imports from Mexico.

The U.S. Trade Representative’s office said it is keeping in place most of its NAFTA objectives, first published in July, including a first-ever goal of reducing U.S. trade deficits.

USTR Robert Lighthizer said that the revisions are aimed at keeping Americans informed about what the Trump administration is seeking in a revised NAFTA.

“If we are able to achieve these objectives, we will both modernize and rebalance NAFTA to better serve the interests of our workers, farmers, ranchers and businesses,” Lighthizer said in a statement.

The new objectives on investment and intellectual property rights add considerable detail, partly aimed at reflecting existing demands and partly aimed at setting precedents for future trade agreements.

On investment, the objectives now seek to provide “meaningful procedures for resolving investment disputes, while ensuring the protection of U.S. sovereignty and the maintenance of strong U.S. domestic industries.”

U.S. negotiators are seeking to allow countries to “opt in” to an investor-state dispute settlement mechanism and to eliminate panels that arbitrate anti-dumping disputes between NAFTA countries.

But the new objectives for NAFTA investment rules also seek to prohibit forced technology transfers and technology localization, a goal that seems more aimed at addressing U.S. complaints about Chinese investment practices.

On intellectual property, the new objectives specify that the USTR will seek U.S. equivalent standards on trademarks, patents, copyrights with some appropriate exceptions, undisclosed test or other data and trade secrets.

The wording on rules of origin goals was also slightly revised to conform with the U.S. demand that NAFTA-built cars and trucks contain 50 percent U.S.-specific content.

 
…

It’s been more than two months since Hurricane Harvey destroyed or damaged tens of thousands of homes across Houston and east Texas, and cleanup is expected to last 20 months, overtaking Hurricane Katrina as the most expensive rebuilding effort in U.S. history. Undocumented workers are part of the daunting task of reconstructing America’s fourth-largest city. VOA’s Ramon Taylor reports they are doing so despite multiple risks.
…

After more than a decade of making cars and SUVs — and, more recently, solar panels — Tesla Inc. wants to electrify a new type of vehicle: big trucks.

The company unveiled its new electric semitractor-trailer Thursday night near its design center in Hawthorne, California.

CEO Elon Musk said the semi is capable of traveling 500 miles on an electric charge and will cost less than a diesel semi considering fuel savings, lower maintenance and other factors. Musk said customers can put down a $5,000 deposit for the semi now and production will begin in 2019.

“We’re confident that this is a product that’s better in every way from a feature standpoint,” Musk told a crowd of Tesla fans gathered for the unveiling.

​One-fourth of transit emissions

The move fits with Musk’s stated goal for the company of accelerating the shift to sustainable transportation. Trucks account for nearly a quarter of transportation-related greenhouse gas emissions in the U.S., according to government statistics.

Musk said Tesla plans a worldwide network of solar-powered “megachargers” that could get the trucks back up to 400 miles of range after 30 minutes.

Tesla, Musk stretched

But the semi also piles on the chaos at Palo Alto, California-based company. Tesla is way behind on production of the Model 3, a new lower-cost sedan. It’s also ramping up production of solar panels after buying Solar City Corp. last year. Musk has said Tesla is also working on a pickup and a lower-cost SUV and negotiating a new factory in China. Meanwhile, the company posted a record quarterly loss of $619 million in its most recent quarter.

Musk, too, is being pulled in many different directions. He leads rocket maker SpaceX and is dabbling in other projects, including high-speed transit, artificial intelligence research and a new company that’s digging tunnels beneath Los Angeles to alleviate traffic congestion.

“He’s got so much on his plate right now. This could present another distraction from really just making sure that the Model 3 is moved along effectively,” said Bruce Clark, a senior vice president and automotive analyst at Moody’s.

Uncertain market

Tesla is venturing into an uncertain market. Demand for electric trucks is expected to grow over the next decade as the U.S., Europe and China all tighten their emissions regulations. Electric truck sales totaled 4,100 in 2016, but are expected to grow to more than 70,000 in 2026, says Navigant Research.

But most of that growth is expected to be for smaller, medium-duty haulers like garbage trucks or delivery vans. Those trucks can have a more limited range of 100 miles or less, which requires fewer expensive batteries. They can also be charged overnight.

Long-haul semi trucks, on the other hand, would be expected to go greater distances, and that would be challenging. Right now, there’s little charging infrastructure on global highways. Without Tesla’s promised fast-charging, even a midsized truck would likely require a two-hour stop, cutting into companies’ efficiency and profits, says Brian Irwin, managing director of the North American industrial group for the consulting firm Accenture.

Irwin says truck companies will have to watch the market carefully, because tougher regulations on diesels or an improvement in charging infrastructure could make electric trucks more viable very quickly. Falling battery costs also will help make electric trucks more appealing compared to diesels.

But even lower costs won’t make trucking a sure bet for Tesla. It faces stiff competition from long-trusted brands like Daimler AG, which unveiled its own semi prototype last month. 

Fleet operators want reliable trucks, and Tesla will have to prove it can make them, said Michelle Krebs, executive analyst with the car shopping site Autotrader.
…

The Venezuelan government and its state-owned oil company PDVSA have officially defaulted on billions of dollars’ worth of bonds, the latest chapter of the country’s deep financial collapse.

 The International Swaps and Derivatives Association, a group of banks and brokers that determines whether an entity like Venezuela has failed to make on-time payments on its debts, voted Thursday to say that Venezuela had defaulted.

The vote will trigger what is known as a “credit event” on securities like credit default swaps, which investors buy as a type of insurance against a potential default. The 15-member group must now decide how it will settle the swaps.

Two rating agencies — Fitch and Standard & Poor’s — already determined this week that Venezuela’s government was in default.

PDVSA bonds were trading at 26.5 cents on the dollar, compared with roughly 30 cents back in September, according to FactSet.  

Venezuela’s debt skyrocketed to over $120 billion under the late President Hugo Chavez as the government spent heavily on social programs while oil prices were high. About half its debt is in the form of dollar-denominated bonds.

A drop in oil prices and mismanagement crushed the economy, leading to widespread shortages of food and other basics amid triple-digit inflation.

At a meeting with investors Monday, Vice President Tareck El Aissami tried to assure creditors that the country’s debts will continue to be paid. But those in attendance said they learned of no concrete plans for reorganizing the debt.

 
…

Businesses striving to stamp out slavery from their supply chains should not dismiss struggling suppliers but train them to improve the lives of workers, and technology can play a part, leading companies including Apple and Walmart said on Wednesday.

In recent years modern-day slavery has increasingly come under the global spotlight, putting ever greater regulatory and consumer pressure on firms to ensure their supply chains are free of forced labor, child labor and other forms of slavery.

From cosmetics and clothes to shrimp and smartphones, supply chains are often complex with multiple layers across various countries – whether in sourcing the raw materials or creating the final product – making it hard to identify exploitation.

As companies delve deeper into their supply chains to examine workers’ conditions, they should not punish suppliers who violate human rights but help them raise standards and work more efficiently, said Paula Pyers of U.S. tech giant Apple.

“We are loathe to terminate a business relationship in cases of violations,” Pyers, Apple’s head of supplier responsibility, told the Thomson Reuters Foundation’s annual Trust Conference, which focuses on slavery and women’s empowerment.

“We want to teach and train suppliers to make them better,” said Pyers, adding that Apple has helped more than 11.5 million workers to learn their rights, and returned at least $28 million to 35,000 employees forced to pay fees to obtain their jobs.

Turning to tech

About 25 million people globally were estimated to be trapped in forced labor in 2016, according to the International Labor Organization (ILO) and rights group Walk Free Foundation.

With consumers increasingly conscious of slave labor and willing to pay more for ethically sourced goods, big brands should lead by example to inspire their suppliers to get into line, and also to boost profits, said Jan Saumweber of Walmart.

“Responsible sourcing is key towards our goal of being the most trusted retailer,” said Saumweber, senior vice president of responsible sourcing at Walmart, the world’s largest retailer.

She said Walmart has turned to technology to improve workers’ rights worldwide – from hotlines to a smartphone app in the style of TripAdvisor that allows Burmese migrants working in Thailand’s fishing industry to review their employers.

Speaking on a panel about best business practices to tackle modern slavery, several experts said cleaning up supply chains would only be sustainable if this resulted in greater profits.

“Investors can direct trillions of dollars to companies with strong human rights policies and clean supply chains,” said Jean Baderschneider, head of Global Fund to End Slavery, a public-private partnership seeking $1.5 billion to combat the crime.

“But it can’t be a case of charity or philanthropy – they need to see better returns through having clean supply chains.”

But firms’ efforts to tackle slavery, from codes of conducts to audits, are often lip service and deflect attention from a need for tougher measures, said Bobby Banerjee, professor of management at the University of London’s Cass Business School.

“The problem with CSR (corporate social responsibility) is that there is too much C, and not enough S or R,” he said.

“Forced labor is not an aberration, but a viable management practice … an outcome of the economic system we live in.”
…

U.S. President Donald Trump pushed Thursday for adoption of a wide-ranging overhaul of the country’s complex tax laws as he met with the majority Republican caucus in the House of Representatives shortly before a scheduled vote on the issue.

Republican leaders in the House have voiced optimism that they have enough votes to approve the changes that would cut the corporate tax rate from 35 percent, one of the higher rates in the world, to 20 percent and cut taxes for millions of middle-class taxpayers, but not everyone. The measure would add $1.5 trillion to the country’s long-term $20 trillion in debt.

Trump, without a major legislative victory in his first 10 months in office, has been urging Congress to adopt a tax overhaul by Christmas; but, the changes are controversial and no Democratic lawmakers have announced their support.

Senate’s plan

Republican leaders in the Senate are advancing their own tax plan, but its fate is uncertain, with Republicans only holding a 52-48 majority. Senator Ron Johnson of Wisconsin on Wednesday became the first Republican senator to announce his opposition to both the Senate and House versions of the changes because he said they do not cut taxes enough to help small businesses.

Democrats have opposed the Republican tax-cutting effort, which they say greatly benefits the country’s wealthiest taxpayers, without enough help for people who earn way less money. Virtually every U.S. taxpayer would be affected by the changes being considered, but the overhaul is in such a state of flux in Congress that individuals have been hard-pressed to determine whether they would get a tax cut or not.

Trump said on his Twitter account, “Tax cuts are getting close!”

But he disparaged opposition Democratic lawmakers for their lack of support, saying, “Why are Democrats fighting massive tax cuts for the middle class and business (jobs)? The reason: Obstruction and Delay!”

A key House Republican leader, Congressman Kevin Brady, said the House plan “represents a bold path forward that will allow us as a nation to break out of the slow-growth status quo once and for all.”

Obamacare mandate

Trump, however, has complicated his push for tax reform by asking that Congress include a provision that would end the requirement that most Americans buy health insurance or pay a fine if they do not. Congress already failed earlier this year to overhaul national health care policies championed by former President Barack Obama, a law commonly known as Obamacare.

Democratic lawmakers, and some Republicans, are opposed to attaching the health law change on buying insurance in the tax legislation, which if it is kept in the tax proposal, could imperil its passage, especially in the Senate.

While he was on his five-nation Asia trip, Trump tweeted, “I am proud of the (Republican) House & Senate for working so hard on cutting taxes (& reform.) We’re getting close! Now, how about ending the unfair & highly unpopular (individual) Mandate in OCare & reducing taxes even further?”

 
…