The Trump Administration says it is time for tougher enforcement of rules governing hiring certain foreign workers in the United States, and to review laws requiring U.S. government agencies to use American-made products. The president is scheduled to sign an executive order regarding “Buy American/Hire American” rules on Tuesday.

In a briefing for journalists, senior administration officials said lax enforcement and numerous legal loopholes mean American workers and companies lose jobs and business to foreign competition, which hurts the U.S. economy.

Government agencies are being directed to review their procurement practices and require that exceptions to the “buy American” rules be approved by the head of the agency.

Officials also said government procurement portions of existing trade agreements will be reviewed to see if U.S. companies get the same chance to sell products to the governments of our trading partners that foreign firms get in Washington.

Another review is aimed at rules governing visas issued to foreigners with certain skills, called the “H-1-B visa” program. The program is supposed to bring workers with skills that are scarce in the United States into the country. But Trump Administration officials say they are concerned that companies are hiring foreigners who do the same work as Americans at lower wages.

Government agencies are being directed to do “top to bottom” reviews of these rules and laws, and report problems and recommendations that may bring changes to laws and rules.
…

Retail sales were weaker than expected in both March and February, after government data showed the worst two-month performance for the retail sector in two years. US Census data suggest the weakness was the result of lower fuel prices and reduced auto profits. But retail experts say the industry itself is changing, driven by technological and demographic change.
…

A state-backed newspaper in the United Arab Emirates that was bought by an Emirati who oversees the English soccer club Manchester City is undergoing layoffs, those with knowledge of the firings said Monday.

They told The Associated Press that staffers at The National were informed Sunday they had been let go. They spoke to the AP on condition of anonymity for fear of repercussions.

It wasn’t clear how wide the layoffs were or what specific plans The National’s new owner had for the daily newspaper. Repeated calls to the newspaper rang unanswered Monday.

The layoffs come after months of turmoil at The National, which was founded in 2008 and staffed with top writers and editors from Western newspapers. Its owner, the state-backed firm Abu Dhabi Media, hoped it would become the Mideast’s standard for independent, hard-nosed newspapering.

But while the paper broke local stories on skyscraper fire safety and other issues, it largely stayed away from controversial topics in a country with strict laws governing speech.

International Media Investments, a subsidiary of Abu Dhabi Media Investment Corp. owned by Sheikh Mansour bin Zayed Al Nahyan of Manchester City, bought The National in November from Abu Dhabi Media. Sheikh Mansour’s media firm has a joint venture with Britain-based Sky to run the Arab satellite news channel Sky News Arabia.

In a statement, International Media Investments said: “The National is putting together its team, made of existing and new talent,” and will undergo “a digital transformation while retaining its print product.” It answered no questions from the AP about the layoffs.

Although the newspaper sale has yet to finalize, staffers had to reapply for jobs at the paper. All this comes as low global oil prices have pinched the economy of the United Arab Emirates, a federation of seven sheikhdoms on the Arabian Peninsula.

Sheikh Mansour is a member of the ruling family of Abu Dhabi, the UAE’s oil-rich capital. He also serves as a deputy prime minister and minister of presidential affairs.
…

Mini motorcycle and go-kart maker Monster Moto made a big bet on U.S. manufacturing by moving assembly to this Louisiana town in 2016 from China.

But it will be a long ride before it can stamp its products “Made in USA.”

The loss of nearly one out four U.S. factories in the last two decades means parts for its bike frames and engines must be purchased in China, where the manufacturing supply chain moved years ago.

“There’s just no way to source parts in America right now,” said Monster Moto Chief Executive Alex Keechle during a tour of the company’s assembly plant. “But by planting the flag here, we believe suppliers will follow.”

Monster Moto’s experience is an example of the obstacles American companies face as they, along with President Donald Trump, try to rebuild American manufacturing. U.S. automakers and their suppliers, for example, have already invested billions in plants abroad and would face an expensive and time-consuming transition to buy thousands of American-made parts if President Trump’s proposed “border tax” on imported goods were to become law.

When companies reshore assembly to U.S. soil – in Monster Moto’s case that took two years to find a location and negotiate support from local and state officials – they are betting their demand will create a local supply chain that currently does not exist.

For now, finding U.S.-based suppliers “remains one of the top challenges across our supplier base,” said Cindi Marsiglio, Wal-Mart Stores Inc.’s vice president for U.S. manufacturing and sourcing. Wal-Mart partnered with Monster Moto and several other U.S. companies in a drive to increase spending on American-made goods by $250 billion by 2023 in response to consumer demand for American-made goods.

Their experience has shown Americans’ patriotic shopping habits have limits, namely when it comes to price.

Take Monster Moto’s bikes, which sell for between $249 to $749. Keechle, the CEO, says he can’t raise those prices for fear his price sensitive prospective customers will turn to less expensive rivals made in China.

“Consumers won’t give you a free pass just because you put ‘Made in USA’ on the box,” Keechle says. “You have to remain price competitive.”

Keeping a sharp eye on labor costs in their factory is one thing these U.S. Manufactures can control. They see replacing primarily lower-skilled workers on the assembly line with robots on American factory floors as the only way to produce here in a financially viable, cost-competitive way. It’s a trend that runs against the narrative candidate Donald Trump used to win the U.S. presidency.

Since taking office, Trump has continued promises to resurrect U.S. manufacturing’s bygone glory days and bring back millions of jobs. On March 31, Trump directed his administration to clamp down on countries that abuse trade rules in a bid to end to the “theft of American prosperity.”

But it’s more complicated on the ground for companies like Monster Moto.

“It’s almost as if people think you can just unplug manufacturing in one part of the world and plug it in to the U.S. and everything’s going to be fine,” said David Abney, Chief Executive Officer of package delivery company United Parcel Service Inc., which helped Monster Moto reconfigure its supply chain to bring its Chinese-made parts to Ruston.

“It’s not something that happens overnight,” he said.

A White House official said that the Trump administration’s efforts to encourage manufacturers to reshore production will be focused on cutting regulations and programs to provide new skills to manufacturing workers.

“We recognize that the manufacturing jobs that come back to America might not all look like the ones that left,” a White House official said, “and we are taking steps to ensure that the American workforce is ready for that.”

Making robots great again

In Monster Moto’s cavernous warehouse in Ruston, boxes of imported parts that are delivered at one end then become bikes on a short but industrious assembly line of a few dozen workers.

A solitary, long-bearded worker by the name of Billy Mahaffey fires up the bikes to test their engine and brakes before a small group of workers puts them in boxes declaring: “Assembled in the USA.”

Helped by that label, Monster Moto has experienced a recent boom in demand from major customers that include Wal-Mart. The company expects to double production to 80,000 units and increase its assembly workers — who make $13 to $15 an hour — to 100 from around 40 in 2017.

The most likely components Monster Moto could produce in America first are black, welded-metal frames for bikes and go-karts, but they would have to automate production because human welders would be too expensive.

“We can’t just blow up our cost structure,” said Monster Moto President Rick Sukkar. “The only way to make it work in America is with robotics.”

The same principle applies for much larger manufacturers, such as automotive supplier Delphi Automotive PLC’s.

Chief Financial Officer Joe Massaro told analysts in February that 90 percent of the company’s hourly workforce is in “best-cost countries.”

When asked about shifting production to the United States from Mexico, Massaro said depending on what happens to trade rules “it would have to be much more of the sort of the automated type manufacturing operations just given… the labor differential there.”

That trend is already showing up in data compiled by Economic Policy Institute, a Washington-based think tank.

According to senior economist Rob Scott, not only did America lose 85,000 factories, or 23.5 percent of the total, from 1997 to 2014, but the average number of workers in a U.S. factory declined 14 percent to 44 in 2014 from 1997. According to Scott, much of the decline in workers was due to automation.

“We’re going to see more automation in this country because it makes good sense economically for every company,” said Hal Sirkin, a managing director at the Boston Consulting Group. “You can spend a lot of time bemoaning it, but that’s not going to change.”

Manufacturers say automated production requires fewer, but more skilled workers such as robot programmers and operators.

The National Association of Manufacturers (NAM) estimates because of the “skills gap” there are 350,000 unfilled manufacturing jobs today in a sector that employs over 12 million people.

In Ruston, Mayor Ronny Walker bet on Monster Moto by guaranteeing the company’s lease because he wants to diversify the city’s economy, and envisions suppliers setting up alongside Monster Moto’s assembly plant.

“Could it take a long time to bring manufacturing back here?

Sure,” he says. “But you have to start somewhere.”
…

China’s economic recovery is gaining traction, with growth rising to its fastest pace in over a year in January-March.

The 6.9 percent annual pace of expansion for the world’s second-largest economy, reported Monday, surpassed economists’ forecasts and was an improvement from 6.8 percent growth in the last quarter of 2016.

Growth last was that strong in July-September of 2015.

Analysts said government spending and a property boom spurred by easy credit were the main factors helping to driving stronger demand.

China saw its slowest growth in nearly three decades in 2016, at 6.7 percent. The official full-year economic growth target for 2017 is 6.5 percent.

“Currently, China’s economy is demonstrating good signs of pickup in growth, overall price stability, expansion in employment and improvement in the international balance of payments,” Mao Shengyong, a spokesman for the National Bureau of Statistics, told reporters in Beijing.

Fears of being dragged into a trade and currency war with the U.S. have abated after U.S. President Donald Trump toned down his previously antagonistic comments against Beijing.

A summit earlier this month with Chinese President Xi Jinping ended calmly, and the U.S. Treasury Department did not label China a currency manipulator in its latest assessment.

During the first quarter, investment in fixed assets such as factories expanded 9.2 percent from a year earlier, while retail sales grew 10 percent. Industrial production rose 6.8 percent, including a stronger-than- expected 7.6 percent year-on-year gain in March.

Although exports have also shown sharp improvement, strong lending and investment figures suggest Beijing is relying on its traditional strategy of powering growth through government stimulus. China’s leaders have been trying to shift to an approach based more on consumer demand but tend to open the spending and credit taps at times when growth appears to be slowing too much.

“The question we need to ask is whether this investment-led model is sustainable as the authorities have trouble taming credit,” said Raymond Yeung and David Qu, economists at ANZ.

The latest figures indicate China’s economy is on track to meet its official growth target — a good sign for China’s communist leaders, who don’t like surprises and are preparing for a twice-a-decade party congress in the autumn to appoint new leaders.

“The 6.5 percent target this year, you could say it’s more important than ever, because of the political reshuffle later this year,” said Amy Zhuang, chief Asia analyst at Nordea Markets. “At least being able to maintain the stability in growth is very, very important for Beijing.”

On a quarter-to-quarter basis, which is how other major economies report data, the economy lost steam, expanding just 1.3 percent. That’s slower than 1.7 percent in the fourth quarter of 2016.

The economists at ANZ said such figures should be viewed cautiously because they might reflect changes in how the government made adjustments for seasonal factors.

Economists say they expect the boost from the government’s policies and the property boom to persist for a few more months before fading later in the year.

Real estate plays an outsize role in fueling growth in the wider Chinese economy by spurring knock-on demand in the manufacturing and service sectors.

House prices will likely start cooling this year as tighter restrictions finally kick in, but Beijing will probably take steps to offset that decline with more stimulus to meet its annual growth target, Zhuang said.
…

Each day, millions of Americans drink purified water and other beverages from disposable plastic bottles. More than 60 million of those bottles are dumped in landfills or burned in incinerators daily. But a couple of American entrepreneurs are putting some of them to good use by recycling them into shoes.
…

You may have noticed: Much of the recent anti-immigration rhetoric in Washington most loudly comes from factions on the political right: H1B, H2B, it’s all about protecting American jobs.

But every step of the way, progressive groups — while pro-immigrant — are just as critical of foreign worker visas. Federal regulations on the books, they argue, are inherently insufficient to protect visa holders from abuse, whether through unwarranted recruitment fees, misrepresentation of job requirements, fraud or intimidation.

The issue plagues potential recruits, but also well-meaning businesses that can’t find enough Americans willing to take seasonal jobs. In Cape Cod, Massachusetts and other areas of the country whose economic models are centered on five-to-six-month tourist seasons, the work of H2B visa-holders becomes essential to business owners.

Employers worry, too

Tyler Hayes, vice president of Cape Cod Restaurants, says he is fortunate that his seasonal foreign workforce, mainly from Jamaica, has created a “family atmosphere” during his 20-year tenure with the company.

“Now, their children are coming in, working for us,” Hayes said.

But while Hayes can only point to the well-being of his own workforce, he acknowledges that at least in recent years, abuse of workers has not been inconceivable.

“There used to be these companies that would send out these big petitions,” Hayes recalled. “They bring in 100 or 200 people, get them in the country and then farm them out.”

In response, the U.S. Department of Labor (DOL) and Department of Homeland Security (DHS) cracked down on abuse within the H2B system in 2015, both in order to prevent the exploitation of workers and to ensure U.S. workers’ awareness of available jobs.

Are regulations enough?

Elizabeth Mauldin, policy director at Centro de los Derechos del Migrante, Inc. (CDM) — the Center for Migrant Rights — calls those protections basic, including the right to receive a contract before entering the U.S. and protection from being charged a recruitment fee.

But many aspects of those existing regulations, she argues, are difficult to ensure, absent greater transparency in the recruitment process.

“It’s impossible to enforce a ban on charging workers fees,” Mauldin told VOA. “When workers are charged fees upfront, they are vulnerable to the same type of economic coercion across the board.” As a result, she notes, foreign workers become susceptible to wage theft and other abuses, regardless of their visa category.

Afraid to report

A 2013 report issued by CDM, whose findings were based on a survey and in-depth interviews with hundreds of H2B workers, found that 58 percent of respondents reported paying illegal recruitment fees, while 10 percent reported recruitment fraud — having paid a fee for a nonexistent job.

While there are mechanisms in place for foreign workers to report abuse, Mauldin argues that the disincentives are often too great.

“[Abusive employers] will say, at the end of the season, ‘If you pay those fees, then we will be more likely to recruit you in the future,’ or ‘If you don’t report these violations, then our recruiter will choose you again next year,’” Mauldin said.

Jane Nichols Bishop, founder and president of Peak Season Workforce, a family-run company that helps Cape Cod-area businesses secure H2B visas, says the mechanisms in place to prevent exploitation, including audits by the Department of Labor, have largely worked. But in cases where they do not, she says it’s in everyone’s interest that the infractions are reported.

“If there are abuses, we would like to see them caught,” Nichols said. “They give everyone who does this and who works at this very successfully a very bad name.”

Workers empower themselves

Despite ongoing reports of abuse nationwide, there is some hope for affected foreigners outside of federal regulations, thanks to the internet. A bilingual workers’ rights initiative, which Mauldin calls the Yelp for migrant workers, allows workers to review recruiters and share their experiences, and create a self-empowering community in the process.

 
…

Steeped in centuries of seemingly impenetrable tea tradition, Afghanistan’s capital is getting a little coffee buzz.

Nargis Aziz Shahi says business has been increasing day by day since she opened iCafe a couple of weeks ago. Looking a little like a brick-walled Starbucks with a distinctively homey Afghan feel, it’s attracting a mostly youthful clientele drawn by free internet service and books to peruse over a cup or two.

“There were three key objectives that led me open the cafe: 1) to introduce coffee to Afghans who mostly don’t know coffee and its taste and benefits; 2) to provide a place for our youth to carry out social activities; and 3) to provide job opportunities for young people,” Shahi told VOA’s Afghan service.

Tea came to Afghanistan early

Afghanistan was introduced to tea early because of its location on ancient trade routes. The Chinese traded silk and tea for other commodities. Tea became part of the country’s hospitality for guests. Just about every family has its own recipe.

Today, Afghanistan is the world’s largest tea consumer, with each person consuming an average of almost 4.5 kilograms — more than 1,500 cups — per year in 2012. By comparison, the U.S. ranked 72nd at 0.4 kilograms per person.

Only the Russian Federation and Britain, with much larger populations, import more tea.

Coffee culture gets a start

Dr. Nabi Misdaq, adviser to President Ashraf Ghani, has visited iCafe. He regards coffee drinking as a new, enlightening culture in Afghanistan.

“It is a good beginning,” Misdaq said. “It is a profitable business, because many young people come here to read books and exchange ideas. I am sure that this will also lead to the opening of new shops.”

The cafe also serves as a place for young Afghans to carry out social and cultural activities. They come to iCafe to attend literary programs and poetry contests.

The female customers say there are few other places where they can get together and entertain themselves, but they maintain that they come to the shop to relax and enjoy.

“I am very happy that we have a coffee shop in Kabul,” said customer Samira Seerat. “It is a very good place for women to visit. There are in fact no appropriate places for women in Kabul, and Afghanistan as a whole, to visit, because our people believe that women cannot go to restaurants.”
…

Steeped in centuries of traditional tea drinking, Afghanistan is getting a little coffee buzz for a change. Hikmat Sorosh has more on this popular new trend from the Afghan capital, Kabul, in this story narrated by Michael Lipin, with additional reporting by Khalil Noorzaie in Herat.
…

The impact of automation on U.S. jobs is open to debate. Robots have displaced millions of manufacturing workers, and automation is getting cheaper and more common, raising concerns it will eventually supplant far more workers in the services sector of the economy, which includes everything from truck driving to banking. 

University of Virginia Darden School of Business Professor Ed Hess says we are just starting to see automation’s impact. “It is going to be broad and it is going to be deep,” he said, adding that “tens of millions” of jobs could be at risk.

Data from the Bureau of Labor Statistics show 5 million U.S. manufacturing jobs have disappeared already.

While some politicians blame trade for the job losses, most economists say automation is mainly to blame as robots do routine factory tasks previously done by humans. 

Hess calls self-driving cars and trucks a threat to millions of human jobs, and says fast-food workers are also vulnerable, as companies install electronic kiosks to take restaurant orders. McDonalds says displaced workers will be reassigned to other tasks.

The professor says research shows nearly half of U.S. jobs could be automated, including retail store clerks, doctors who scan X-rays for disease, administrative workers, legal staffers, and middle managers.

Future of jobs

Starting more than a century ago, advancing technology changed the United States from an agrarian to a manufacturing economy. Displaced farm hands eventually found factory work, but the transition took years. This new transition may also take a time because, Hess says, “We’re not going to anywhere produce the number of jobs that we automate.”

But 50 years of experience in banking shows that while automation may change the industry, it does not necessarily end jobs for humans. 

The first Automatic Teller Machines, or ATMs, were installed 50 years ago, and there are now 420,000 in the United States. International Monetary Fund analysis shows the number of human tellers did not drop, but rose slightly.

“Humans were doing mostly service and routine types of tasks that could be converted into more automated tasks,” Tremont Capital Group’s Sam Ditzion said. But “the humans then became far more valuable in customer service and in sales in these branches.”

In a Skype interview, Ditzion said that while automation can be “scary,” the oversight of ATMs created new kinds of work for “tens of thousands of people.”

Automation grows

A report by Redwood Software and the Center for Economics and Business Research (CEBR) says surging investment and falling prices will help robotics grow.

Redwood’s software handles business processes that are repetitive, rule-bound and tedious.

CEBR Economist David Whitaker says as growing fleets of robots take over mundane tasks, higher productivity could bring higher wages for some human workers. He says people who want to stay employed must hone skills that robots can’t handle, such as unpredictable work or the need for an emotional human connection.

One example, according to Alex Bentley of Blue Prism software, is a program that helps law firms examine visa applications. The robot enters data but gets help from a human partner with problems such as missing information. Bentley says some human jobs have been lost, but in other cases displaced workers move within the firm to new work, particularly jobs that are “customer-centric.”

U.S. Senator Chris Coons says Germany and other nations use training programs to help their citizens get and keep jobs in a changing economy. The Democrat says America’s competitors invest six times what the U.S. does in skills development and workforce training, while Washington has slashed funding for such programs. Coons and a Republican colleague, Senator Thom Tillis, are seeking more help for schools, companies, workers and government agencies operating programs to upgrade the workforce.

New opportunities

While workers need to make some changes, philosopher and professor Ed Freeman of UVA’s Darden School of Business says companies also need to rethink their basic purpose. He says businesses must do more than just maximize value for shareholders.

“I need red blood cells to live,” he said. “It doesn’t follow that the purpose of my life is to make red blood cells. Companies need profits to live, it doesn’t follow that the purpose of a company is to make profits. We have to think through this idea about what purpose is in business.”

Freeman says he is “optimistic” because many jobs, such as creating applications for smartphones that would have been unimaginable a few years ago, are creating thousands of opportunities. He is also encouraged by his many students who, he says, bring new ideas, passion and energy to the task of starting businesses that will create new kinds of jobs.

Freeman is convinced that the problem isn’t the tsunami of lost jobs, it is the lack of “really good ideas” for creating a safety net for people who will lose jobs to automation.

Many experts worry about growing levels of automation — particularly advanced forms known as artificial intelligence — hurting employment for U.S. workers.

But U.S. Treasury Secretary Steven Mnuchin says it will be “50 or 100 years” before artificial intelligence takes American jobs. In an interview with Mike Allen of AXIOS, Mnuchin said, “I think we are so far away from that, [it is] not even on my radar screen.”
…

Robots have displaced millions of manufacturing workers, and automation is getting cheaper, more capable, and far more common in the much-larger services sector. This area includes everything from truck driving to banking and has far more jobs than factories had. VOA’S Jim Randle reports that one expert says “tens of millions” of jobs could be at risk, but others say the picture is more complex, and less grim.
…

U.S. President Donald Trump’s administration declined to name any major trading partner as a currency manipulator in a highly anticipated report on Friday, backing away from a key Trump campaign promise to slap such a label on China.

The semi-annual U.S. Treasury currency report did, however, keep China on a currency “monitoring list” despite a lower global current account surplus, citing China’s unusually large, bilateral trade surplus with the United States.

Five other trading partners who were on last October’s monitoring list – Japan, South Korea, Taiwan, Germany and Switzerland – also remain on the list, ensuring that the Treasury would apply extra scrutiny to their foreign exchange and economic policies.

The Treasury report recognized what many analysts have said over the past year, namely that China has recently intervened in foreign exchange markets to prop up the value of its yuan currency, not push it lower to make Chinese exports cheaper.

Foreign exchange experts told Reuters last week that a manipulator label was unlikely for Beijing.

Trump, who on the campaign trail blamed China for “stealing” U.S. jobs and prosperity by cheapening its currency, repeatedly promised to label the country as a currency manipulator on “day one” of a Trump administration – a move that would require special negotiations and could lead to punitive duties and other action.

The report did call out China’s past efforts to hold down the yuan’s value, saying this created a long-term “distortion” in the global trading system that “imposed significant and long-lasting hardship on American workers and companies.”

The Treasury also warned that it will scrutinize China’s trade and currency practices very closely and called for faster opening of China’s economy to U.S. goods and services and a shift away from exports to more domestic consumption.

“China will need to demonstrate that its lack of intervention to resist appreciation over the last three years represents a durable policy shift by letting the RMB (yuan) rise with market forces once appreciation pressures resume,” the report said.

The report shows the Trump administration is taking an approach to foreign exchange based on data rather than politics, said Nathan Sheets, a former U.S. Treasury under secretary for international affairs during the Obama administration.

“This isn’t the report that Donald Trump had in mind on Nov. 8,” said Sheets, who is now with the Peterson Institute for International Economics in Washington. “But it lays out legitimate complaints. It’s a clear statement to the Chinese that they need progress.”

The Treasury did not alter its three major thresholds for identifying currency manipulation put in place last year by the Obama administration: a bilateral trade surplus with the United States of $20 billion or more; a global current account surplus of more than 3 percent of gross domestic product, and persistent foreign exchange purchases equal to 2 percent of GDP over 12 months.

No countries were determined to have met all three of these criteria, but Japan, South Korea, Taiwan, Germany and Switzerland all met two of them.

The Treasury warned Japan against resuming currency interventions, saying that these “should be reserved only to very exceptional circumstances with appropriate prior consultations, consistent with Japan’s G-7 and G-20 commitments.”
…

More than a decade after it was proposed, India’s most ambitious tax reform measure is set to roll out in six weeks following the passage of a law that will replace a plethora of confusing levies with a single, nationwide tax.  

The new goods and services tax (GST) will unite the world’s fastest growing economy into a common market of 1.3 billion people.

The measure is seen as a major achievement for Prime Minister Narendra Modi, who struggled for two years to build a political consensus.

 The government says the GST will be implemented from July 1 after state legislatures ratify it.   

 The new tax is expected to make it vastly easier to do business as it dismantles tax checkpoints at every state border. Businesses have often complained that India’s complicated tax system leaves them grappling with a mesh of separate duties levied by each of the country’s 29 states, and goods are often stranded for hours or even days at state borders as payments are worked out.

 By making distribution more efficient and less expensive, Ankur Bisen at New Delhi based consultancy, Technopak, sees big benefits for consumer-oriented businesses, which have to move goods across state lines in the vast country. 

Another huge benefit will be increased transparency. “It will have implications on corruption because taxation regime will not be vague anymore, it will be very clearly defined,” says Bisen.

For the government, the GST is expected to improve tax compliance and draw more people into the tax net in a country where tax evasion is common. It will also make India more attractive for foreign investors by simplifying rules for a huge and increasingly attractive market.

The government estimates the new tax will boost economic growth by about half a percentage point in its first year of implementation and in the long run by as much as 2 percent.

However several economists say that the political compromises that had to be struck win approval of the new tax mean the sweeping benefits India had hoped to see may not accrue in the short run.  

Taxes will be levied at four levels – five, 12, 18 and 28 percent. Many say the 18 percent and 28 percent tax rates are too high.  

 “It could potentially have been a transformative measure if the structure of GST would have been characterized by a large base and low and single rate,” says D.K. Srivastava at consultancy Ernst and Young. But, he says, “it is going as a multiple-rate system and some of the rates are very high and the tax base is still narrow. Therefore it is a kind of a fragmented GST. ”

Despite the shortfalls, Srivastava says that “given the complications of the size of the Indian economy, it might be useful to start off with a functioning model and then go on reforming it as matters progress.”

Many also warn against a hasty implementation, saying that rushing ahead with a July 1 deadline could make it difficult to handle the transition in a country which has always struggled with bureaucratic ineptitude.

Many businesses, which had long clamored for such a tax, are asking the government for more time to prepare for the switch, saying six weeks is too little. They worry that the tax rates for various products have still be to be decided.

Others point out that the GST will be serviced by state-of-the-art technology and an electronic portal where taxpayers can register, eliminating the conventional and discretionary role of tax authorities.
…

Along northeastern Cape Cod off the coast of Massachusetts, April doesn’t usually equate with sunshine and sandcastles. The month is mostly a time of waiting for the fog and chill to lift off the Atlantic Ocean and the tourists to arrive.

But this year is a problem for seasonal businesses, whose model is built around five-to-six-month, low-skilled jobs in areas like hospitality. Few Americans are willing to fill them and now, thousands of foreign seasonal workers may not be allowed into the U.S. to take them.

Changes to the U.S. temporary work visa program, called H2B, are keeping out the workers that businesses count on.

For affected businesses, the financial loss could be plenty.

“It could be 20 percent,” said Allen Sylvester, president of American Tent & Table, Inc., a family-owned tent rental and party accessory business in Cape Cod, Massachusetts.

Sylvester, who has been with the company since 1996, says it earns roughly 85 to 90 percent of its profits in five months — the region’s outdoor wedding season. Fully staffed, the company employs seven to eight Americans and 13 H2B visa workers.

Normally it’s the former group Sylvester has a hard time hiring. But last September, Congress failed to renew a provision that effectively quadrupled the number of H2B visas available in 2016 by not counting returnees against the annual cap. This year, instead of potentially 264,000 visas, there are 66,000 — half allocated in the spring, the other half in the fall.

Businesses in colder areas like Cape Cod, which typically have later start dates, find themselves at a loss. By the time many could complete their visa applications, the cap had been reached.

“Instead of bringing 3,000 workers here, we right now are bringing 300 workers,” said Jane Nichols Bishop, president of Peak Season Workforce, a family-owned business that helps local companies secure annual H2B visas.

Bishop, who calls herself “Mama Visa,” says the 90-day application process that businesses must follow to gain seasonal employment is stringent, including evidence of advertising to recruit American workers.

Of the 171 applications she personally filed for clients, Bishop says 24 made their way through the Department of Homeland Security before all the visas were gone.

Why not hire more Americans?

At 3.4 percent, the February unemployment rate in Massachusetts is lower than the current national average, 4.5 percent, according to data from the Bureau of Labor Statistics.

But as Falmouth, Massachusetts, resident Paul Skudder said, the numbers don’t paint the whole picture on Cape Cod, a community with a growing number of retirees and decreasing number of youth.

“There is a limited number of job opportunities on the Cape for college-educated professional or near professional people, which overall leads to a little bit of an exodus of bright, educated young people,” Skudder said.

Eligible job seekers who are willing to accept low-skilled employment, generally need a permanent source of income. And students can offer just three months of labor during their summer breaks, not five or six.

The well-being of the younger population is also a factor. In 2015, Cape Cod suffered the highest per capita death rate by opioid overdose in Massachusetts and remains one of the most affected areas in the country.

“A lot of the kids I used to know have now passed away,” said Prince Wright, who attended high school in Falmouth. “That’s the big problem right now … most of our locals are not coming in no more. Either they’re locked up or they moved away because of the changes on the Cape.”

More effort needed?

But along Main Street in the Cape’s largest town, not all are convinced that businesses are trying their best to hire local.

“It’s good for the [foreigners] that are coming over here on work visas, but it also takes away from the people that are living on the streets that can work,” said Mary Richard. “I just think it’s hard on the people here too.”

Politicians are divided on the H2B visa program, seeing it as either economically exploitative or a job-killer for Americans.

Republicans, who control both chambers of Congress, send mixed messages. Attorney General Jeff Sessions, the country’s top law enforcement official, has called the H2B program “detrimental to wages and job opportunities of American workers.” But Donald Trump, before he was president, employed H2B workers during peak resort season at his Florida golf club, Mar-a-Lago.

H2B-reliant businesses worry that the visa is unfairly lumped into Trump’s hard-line stance on immigration. And in Bishop’s mind, some legislators simply don’t understand seasonal economies.

“When people come to Cape Cod and the islands, they come to see and visit us. It’s full employment, we are busy, there’s traffic, so they don’t even realize there is a labor shortage,” Bishop said. “But when you come here in January, you may be the only car on the road for quite a while.”

Hiring strategy

Jim Underdah, general manager at the Coonamessett Inn, considers himself one of the lucky few to secure his share of foreign seasonal workers from Jamaica. Still, a backlog in the system has delayed their arrival and forced him to repurpose the limited workforce he retains year-round.

In anticipation of this, Underdah says many businesses like his choose to employ workers full-time even during the offseason, when he doesn’t need them.

“I have people in the kitchen that we work 40 hours for the winter, so they’re not going to leave me,” Underdah said. “They’re gonna say, ‘Hey, they’re treating us good.’ They’re going to be here this spring. They’re going to get me through till hopefully the workers get in.”

Paul Dean, who runs a seafood retail and catering business, was not as lucky. Lacking the workforce he needs to keep his multiple operations running, he says he may be forced to close one of his locations a couple days a week.

Like Sylvester, Dean predicts this would amount to a loss of 20 percent of annual income.

“That means I’m buying 20 percent less product from local vendors,” Dean said. “We’re obviously collecting 20 percent less in meals tax toward the state. We’re not paying payroll taxes … there’s a huge trickle-down effect.”

Dean and Sylvester are crossing their fingers for a last-ditch effort by lawmakers to reinstate an H2B returning worker exemption before April 28, as part of its fiscal year 2017 federal spending bill. But in case that doesn’t happen, Sylvester offers last-resort advice for summer tourists.

“If you’re going to stay over, bring your sheets and some towels,” he joked, “because there’s going to be no one to clean your room.”

WATCH: One Business Owner Talks about the Challenges
…

At first glance, U.S. President Donald Trump and Federal Reserve chair Janet Yellen may have little in common.

Yellen is an academic economist and veteran of Democratic administrations who is committed to an open global economy, while Trump is a real estate mogul with an electoral base suspicious of the economic order Yellen helped to create.

Yet the two may have interests in common now that Trump is president and both want to get as many Americans working as possible.

Since her appointment as Fed chair in February 2014, Yellen has kept interest rates low and she currently pledges to raise them only slowly even though unemployment, at 4.5 percent, is at its lowest in nearly 10 years.

Meanwhile, Trump’s election campaign promises to cut taxes, spend money on infrastructure and deregulate banking, have helped propel a surge in the U.S. Conference Board’s consumer confidence index to its highest level since the internet stocks crash 16 years ago.

Former Fed staff and colleagues who know Yellen said Trump’s surprising remarks this week in a Wall Street Journal interview, in which he did not rule out Yellen’s reappointment to a new four-year term next year, are not as outlandish as they may appear now that the president has a vested interest in keeping markets and the economy on an even keel.

And the same staff and colleagues say Yellen may well accept reappointment, despite Trump’s criticism of her during last year’s election campaign.

Many in Trump’s Republican party have called for tighter monetary policy and a less activist Fed, but “the president would not really find that useful,” said former Fed vice chair Donald Kohn.

If Trump fills three existing Federal Reserve board vacancies with people Yellen thinks she could work with, “it would be really difficult to turn down” a reappointment when her term as chair expires in February 2018.

“If she continues to do well, he’d be nuts to ditch her for an unknown quantity,” said University of California, Berkeley, economics professor Andrew Rose, a long-time colleague and co-author with Yellen of an oft-cited study of labor markets.

Yellen took over from Ben Bernanke as Fed chair in February 2014 with the U.S. economic recovery from the 2008 financial crisis still on shaky ground, and she has made no secret she puts a priority on growth in jobs and wages and a broad recovery in U.S. household wealth.

In a slow return to more normal monetary policy, Yellen has stopped the purchase of additional financial securities by the Fed and in December 2015 began raising short term interest rates for the first time in 10 years.

So far those policy shifts have been engineered with little apparent impact on job growth, and so mesh with Trump’s core election campaign promises to restore employment and earnings.

The slow rise in interest rates in the past year has also happened while U.S. stock prices have risen to record highs, though Trump has claimed the credit for himself.

Precedent for Fed Chair to Stay On

There is precedent for Trump to stick with a former president’s Fed chair appointment. Paul Volcker, Alan Greenspan and Ben Bernanke, the three previous Fed chairs, served at least two four-year terms and were nominated by both Democratic and Republican presidents.

However it may be a more difficult step for Trump.

During last year’s election campaign, Trump accused Yellen of accepting orders from then President Obama to keep interest rates low for political reasons, and he said he would replace her as Fed chair because she is not a Republican party member.

In a particularly biting moment last year, in a campaign video advertisement, he labeled her as among the “global special interests” who had ruined life for middle America.

The Fed on Thursday said it had no response to Trump’s comments published on Wednesday on Yellen and or on whether Yellen would consider a second term.

Much Could Still Go Wrong

Some of Trump’s advisers and some Republican lawmakers want a more conservative Fed in which the chair has less power and would see a Yellen reappointment as yet another step away from his promise to “drain the swamp” of the Washington establishment.

There are also three current vacancies on the Fed’s seven member Board of Governors, and unorthodox new members could make it difficult for Yellen to manage policy or accept another four-year term.

But if the choice is her consensus style or someone unproven in their ability to manage public and market expectations, “he’d be wise to reappoint her,” said Joseph Gagnon, a former Fed staffer and Berkeley colleague of Yellen’s currently at the Peterson Institute for International Economics.

“I don’t see what is in his interests to appoint someone who is going to jack up interest rates.”
…

Tesla CEO Elon Musk says the company plans to unveil an electric semi-truck in September.

Musk tweeted the announcement Thursday. He offered no other details about the semi, such as whether it will be equipped with Tesla’s partially self-driving Autopilot mode.

Musk also said the company plans to unveil a pickup truck in 18 to 24 months.

Tesla currently sells two electric vehicles, the Model S sedan and Model X SUV. Its lower-cost Model 3 electric car is due out by the end of this year.

But Musk revealed last summer that the Palo Alto, California-based company is working on several more vehicles, including the semi and a minibus.

Tesla shares rose nearly 3 percent in late trading Thursday in response to Musk’s tweet.
…

Chilean President Michelle Bachelet announced on Wednesday evening that she was sending to Congress a bill that would dramatically increase the size of

public pensions in the face of growing opposition to the nation’s current system.

The bill would include an increase in the amount of savings held collectively, a new 5 percent payroll tax, and a corresponding boost in retirement savings. Current pensioners would see savings rise by around 20 percent, while workers currently paying into the system would see increases of up to 50

percent.

“We must advance toward a truly mixed social security system, where all play their part, where solidarity comes from personal effort, where the state and employers play their corresponding role,” Bachelet said in a speech.

Chile’s privatized pension plan was started in the 1980s during the dictatorship of Augusto Pinochet, and the so-called ‘Chilean model’ has been copied and adopted worldwide.

But opposition to it is rising in Chile, with regular street protests demanding changes. Opponents say the payouts are meager, and they complain the pensions are managed by for-profit funds.

It is unclear if Bachelet’s bill can become law. Her governing coalition is severely divided, and parliamentary elections are set to take place in November, while debate on complex bills can take years in Chile.

Earlier in April, Chile’s finance minister said divisions in the government might make any pension reform impossible, and earlier this week, a major education bill pushed by Bachelet failed in committee.

Under the system proposed by Bachelet, the new 5 percent tax would be divided into two parts and have a six-year implementation period. Three percent would go into the personal savings of each worker, while 2 percent would go into a collective account, managed by the state.

The bill would also give pensioners more say in the investment decisions of the pension investment funds, known as AFPs.
…

President Donald Trump plans to revive the hobbled Export-Import Bank of the United States, his office said, a victory for American manufacturers like Boeing and General Electric which have overseas customers that use the agency’s government-backed loans to purchase their products.

Trump first told the Wall Street Journal on Wednesday he would fill two vacancies on the agency’s five-member board that have prevented the bank from having a quorum and being able to act on loans over $10 million. Trump’s picks must gain approval from the Senate, which blocked nominees by former President Barack Obama.

Trump told the Journal that the bank benefits small businesses and creates jobs, a reversal of his earlier criticism of the bank being “featherbedding” for wealthy corporations.

Bank offers loans to foreign entities

The Export-Import Bank, an independent government agency, provides loans to foreign entities that enables them to purchase American-made goods. For example, it has been used by foreign airlines to purchase planes from Boeing and farmers in developing nations to acquire equipment.

The bank’s acting chairman, Charles “CJ” Hall, was not immediately available for comment.

The bank has become a popular target for conservatives, who have worked in Congress to kill the bank, arguing that it perpetuates cronyism and does little to create American jobs.

Trump’s about-face on the export bank comes after meeting on Tuesday with former Boeing Chief Executive Officer Jim McNerney, who left the company last year but oversaw the corporation’s aggressive lobbying effort in support of the bank in 2015.

Trump also met at the White House on Feb. 23 with GE CEO Jeff Immelt and Caterpillar Inc CEO Mark Sutton, both vocal supporters of the bank.

It is not known if they discussed the bank at those meetings.

Bank helps level playing field

Large American corporations that do significant amounts of exports say other countries have similar agencies and the export bank levels the playing field.

“This is an encouraging development on a key competitive issue for U.S manufacturers and their extensive supply chains,” Boeing spokeswoman Kate Bernard said in statement to Reuters.

The U.S. Chamber of Commerce and the National Association of Manufacturers, which includes companies like Ingersoll-Rand, United States Steel and Pfizer, cheered the move.

“Manufacturers are encouraged by President Trump’s vocal support for the bank,” said NAM Vice President of International Economic Affairs Linda Dempsey in a statement.

A 2015 fight to shutter the bank led by conservatives in Congress allowed the bank’s charter to expire for five months.

After overwhelming bipartisan support emerged to renew the bank’s charter, which is needed for it to operate, conservatives blocked nominees to the board, preventing it from financing large exports like aircraft and power turbines.

Groups work to shut down bank

Freedom Partners and Americans for Prosperity, two groups funded by the Republican donor Koch brothers, worked aggressively for years to kill the bank. Brothers Charles and David Koch have opposed the bank for what they call damaging interference into the free market by government.

Nathan Nascimento, Freedom Partners vice president of policy, called the bank on Wednesday “the epitome of what’s wrong with Washington.”

“Reopening the flood gates to Ex-Im’s corporate welfare is a bad deal for hardworking taxpayers and a bad deal for American businesses,” he said.

The Club for Growth, which spends heavily in electing conservative candidates and was one of the few groups to campaign against Trump during the Republican primary in 2016, also lamented the change in position.

“Ex-Im has a long history of cronyism and corruption that is well-known to many in the Trump Administration, and while we hoped it would be done away with, the administration now has taken on the almost impossible challenge of reforming a federal agency whose mission has been to pick winners and losers with taxpayer dollars,” spokesman Doug Sachtleben said in a statement to Reuters.

 
…

Zimbabwean entrepreneurs could soon use movable assets, including livestock and vehicles, to secure loans from banks, according to a bill brought before the country’s Parliament this week.

The southern African country’s economy is dominated by informal business following the formal sector’s contraction by as much as 50 percent between 2000 and 2008, according to government data, after President Robert Mugabe’s seizure of white-owned farms decimated the key agriculture sector.

The Movable Property Security Interest Bill, introduced Tuesday by Finance Minister Patrick Chinamasa, seeks to make it easier for Zimbabwe’s burgeoning informal sector to access bank funds.

A copy of the bill seen Wednesday by Reuters defines movable property as “any tangible or intangible property other than immovable property.”

New economic reality

Presenting the bill, which still has to go through several stages before becoming law, Chinamasa said the majority of small businesses did not have the immovable assets that banks require as collateral for loans.

“The Reserve Bank of Zimbabwe Act will be amended to achieve the objective of this bill, and the assets to be considered include any type, such as machinery, motor vehicles, livestock and accounts receivable,” Chinamasa told lawmakers.

The finance minister said banks had failed to adjust to Zimbabwe’s new economic reality, in which the informal sector, mostly made up of small businesses, plays a dominant role.

Loans to small businesses amounted to $250 million in the year to date, Chinamasa said, out of total bank loans of nearly $4 billion.

“As minister in charge of financial institutions, I feel there is need for a change of attitude by our banks to reflect our economic realities,” Chinamasa said.

The bill provides for a collateral registry to be set up by the central bank, which would maintain a database of all movable assets put up as loan security.

“The purpose of the registry is to facilitate commerce, industry and other socioeconomic activities by enabling individuals and businesses to utilize their movable property as collateral for credit,” reads part of the bill.

Pitching the proposed law to legislators, Chinamasa cited several developing economies — including those of Liberia, Ghana, Malawi, Kenya, Lesotho, Peru and Ukraine — that he said used movable assets as collateral to increase lending to small businesses.

“Their access to banking finance increased by 8 percent [on average], while interest rates declined by 3 percent per annum,” he said.

Foreign currencies

Zimbabwe’s economy enjoyed a temporary reprieve after it adopted the use of multiple foreign currencies — mainly the U.S dollar and South Africa’s rand — in 2009 to replace its inflation-ravaged local unit.

The currency move initially paid dividends, with the economy expanding by an average 11.3 percent between 2010 and 2012, according to World Bank data, while inflation came down to single digits.

However, declining exports from the mineral-dependent country following weaker mineral commodity prices coincided with a sharp rise in imports, triggering an acute foreign currency shortage and slowing down the economy as credit to businesses dried up.
…

President Donald Trump said Wednesday that his administration would not label China a currency manipulator, backing away from a  campaign promise, even as he said the U.S. dollar was “getting too strong” and would eventually hurt the economy.

In an interview with The Wall Street Journal, Trump also said he would like to see U.S. interest rates stay low, another comment at odds with what he had often said during the election campaign.

A U.S. Treasury spokesman confirmed that the Treasury Department’s semiannual report on currency practices of major trading partners, due out this week, would not name China a currency manipulator.

The U.S. dollar fell broadly on Trump’s comments on both the strong dollar and interest rates, while U.S. Treasury yields fell on the interest rate comments, and Wall Street stocks slipped.

Trump’s comments broke with a long-standing practice of both U.S. Democratic and Republican administrations of refraining from commenting on policy set by the independent Federal Reserve. It is also highly unusual for a president to address the dollar’s value, which is a subject usually left to the Treasury secretary.

A day-one promise

“They’re not currency manipulators,” Trump told the Journal about China. The statement was an about-face from Trump’s election campaign promises to slap that label on Beijing on the first day of his administration as part of his plan to reduce Chinese imports into the United States.

The Journal paraphrased Trump as saying that he’d changed his mind on the currency issue because China has not been manipulating its yuan for months and because taking the step now could jeopardize his talks with Beijing on confronting the threat from North Korea.

Separately Wednesday, at a joint news conference with NATO Secretary General Jens Stoltenberg, Trump said the United States was prepared to tackle the crisis surrounding North Korea without China if necessary.

The United States last branded China a currency manipulator in 1994. Under U.S. law, labeling a country as a currency manipulator can trigger an investigation and negotiations on tariffs and trade.

Senate Democratic leader Chuck Schumer said in a statement that Trump’s decision to break his campaign promise on China was “symptomatic of a lack of real, tough action on trade” against Beijing.

“The best way to get China to cooperate with North Korea is to be tough on them with trade, which is the number one thing China’s government cares about,” Schumer said.

Yellen’s future

Trump also told the Journal that he respected Federal Reserve Chair Janet Yellen and said she was “not toast” when her current term ends in 2018.

That was also a turnaround from his frequent criticism of Yellen during his campaign, when he said she was keeping interest rates too low.

At other times, however, Trump had said that low rates were good because higher rates would strengthen the dollar and hurt American exports and manufacturers.

“I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me. But that’s hurting — that will hurt ultimately,” Trump said Wednesday.

“It’s very, very hard to compete when you have a strong dollar and other countries are devaluing their currency,” Trump told the Journal.

The dollar fell broadly Trump’s comments on the strong dollar and on his preference for low interest rates. It fell more than 1.0 percent against the yen, sinking below 110 yen for the first time since mid-November.

“It’s hard to talk down your currency unless you’re going to talk down your interest rates, and so obviously he’s trying to get Janet Yellen to play ball with him,” said Robert Smith, president and chief investment officer at Sage Advisory Services in Texas.

Trump’s comments on the Fed were his most explicit about the U.S. central bank since he took office in January, and they suggested a lower likelihood that he plans to try to push monetary policy in some unorthodox new direction.

Fed overhaul

Some key Republicans have advocated an overhaul of how the Fed works, using a rules-based policy that would most likely mean higher interest rates, not the lower ones Trump said he prefers.

The Fed in mid-March hiked interest rates for the second time in three months, increasing its target overnight rate by a quarter of a percentage point.

“Maybe he’s learning on the job,” said Carl Tannenbaum, chief economist at Northern Trust in Chicago, noting that with Trump’s transition from candidate to president he was now being counseled by more orthodox voices sensitive to what is needed to keep global bond markets on an even keel.

The president is also “very close” to naming a vice chair for banking regulation and filling another open seat that governs community banking on the Federal Reserve Board, U.S. Treasury Secretary Steven Mnuchin said during the interview.
…

President Donald Trump told a group of chief executives Tuesday that his administration was revamping the Wall Street reform law known as Dodd-Frank and might eliminate the rules and replace them with “something else.”

At the beginning of his administration, Trump ordered reviews of the major banking rules that were put in place after the 2008 financial crisis, and last week he said officials were planning a “major haircut” for them.

“For the bankers in the room, they’ll be very happy because we’re really doing a major streamlining and, perhaps, elimination, and replacing it with something else,” Trump said Tuesday.

“That will be the minimum. But we’re doing a major elimination of the horrendous Dodd-Frank regulations, keeping some obviously, but getting rid of many,” he said.

The many provisions of the Dodd-Frank measure were aimed at decreasing risks in the U.S. financial system. The White House is not unilaterally able to upend Dodd-Frank’s rules, almost all of which are implemented by independent regulatory agencies like the Securities and Exchange Commission and the Federal Reserve.

A sweeping change to the law would require congressional action, though in some cases regulators may also have wiggle room to make changes through a formal rule-making process.

Report on regulations

In February, Trump issued an executive order requiring Treasury Secretary Steve Mnuchin to consult with U.S. regulators and submit a report outlining a proposal for possible regulatory and legislative changes that will help fuel economic growth and promote American business interests.

That report, due to be released in June, will most likely serve as a blueprint for possible changes down the road. However, congressional action on a Wall Street bill is not expected in the near term, as Congress focuses primarily on health care and tax reform.

Participants in the Tuesday meeting included Rich Lesser, chief executive of Boston Consulting Group; Doug McMillon, chief executive of Wal-Mart Stores; Indra Nooyi, chief executive of PepsiCo; Jim McNerney, former chief executive of Boeing; Ginni Rometty, chief executive of IBM; and Jack Welch, former chairman of General Electric.

The business leaders are part of Trump’s “Strategy and Policy Forum” that last met with him in February.

Trump also reiterated his criticism of the North American Free Trade Agreement between the United States, Canada and Mexico.

“NAFTA is a disaster. It’s been a disaster from the day it was devised. And we’re going to have some very pleasant surprises for you on NAFTA, that I can tell you,” he said.
…

United Airlines saw its stock price decline by 4 percent or more after a viral video showing a passenger being dragged off a flight and injured sparked outrage in the U.S. and several nations. One airline analyst says he has never seen such a “parade of incompetence.”
…

South Asian migrants powering the construction boom in oil-rich Gulf countries are often illegally made to pay for their own recruitment, adding to hardships of poor working conditions and wages, according to an investigation released Tuesday.

Millions of migrants seeking a way out of poverty by working in Gulf nations from Qatar to the United Arab Emirates must routinely pay fees that can equal a year’s salary, U.S. researchers said in a report.

“Recruitment is not free,” said report co-author David Segall of New York University’s Stern Center for Business and Human Rights. “Somebody does have to bear these costs, but that of course should be the employing company.”

The findings came as conditions for construction workers from India, Nepal and Bangladesh in the 2022 FIFA World Cup host, Qatar, have drawn scrutiny from rights groups who say migrants live in squalor and work without proper access to water and shelter.

In five fact-finding missions to the Gulf and South Asia, the researchers found workers are typically made to pay for their airfare from South Asia and their work visa, often at inflated prices.

Selling visas for profit is illegal in the six Gulf countries the researchers investigated — Saudi Arabia, Kuwait, Qatar, Oman, the United Arab Emirates and Bahrain. But violations rarely lead to prosecution and punishment, the report said.

Fees highest for Bangladeshis

Bangladeshi workers paid as much as $5,200 in recruitment fees, according to the study, the highest price among other South Asian construction workers, who number some 10 million people in the Gulf.

In rare cases, construction companies took on expenditures to recruit their workers, the study found. The fees had the effect of pushing already destitute migrants further into poverty by tying them to high-interest loans.

“These are people who are already desperate enough that they feel that they need to undertake this journey, leave their families in order to just achieve the possibility of economic success,” Segall told the Thomson Reuters Foundation. “For them to be in debt before they even start this journey is really an injustice.”

Reports of abuse of migrant domestic workers have prompted countries such as Kenya, Ethiopia, Uganda and Indonesia to ban their citizens in recent years from seeking jobs in the Middle East.

The New York University report expanded on the findings of an investigation conducted in Qatar and released last week, which concluded hundreds of Asian workers had paid recruitment fees.
…

Industrial air pollution causes nearly 3.5 million deaths a year, and international trade is shifting some of the harmful effects from consuming nations to producing nations, according to a study in the journal Nature.  

The authors say high consumption in the United States and Western Europe harms health in manufacturing countries such as China, and the pattern is continuing among developing nations in Asia.

“Take an example of a toy,” says Steve Davis, an Earth system scientist with the University of California, Irvine, and one of the report’s authors.  He explains that toys sold in America are most often made in China, displacing the emissions that would otherwise be released in the United States.  

“We’re effectively outsourcing the pollution that comes from the manufacture of that product,” he said.

750,000 premature deaths

Worldwide, the scientists estimate air pollution produced by exported goods and services caused more than 750,000 premature deaths in the baseline year of the study, 2007.

The report by Davis and his colleagues at Beijing’s Tsinghua University and other institutions found the cross-border effects of trade-related pollution is greater than the cross-boundary impact of industrial pollution caused by weather patterns.

Particulate matter from China was linked to 65,000 premature deaths outside of China, largely in Japan and the Korean peninsula, and including 3,100 deaths in the United States and Western Europe.  But U.S. and European consumption of goods produced in China was linked to nearly 110,000 premature deaths in China.

The researchers say that as China becomes a consuming society, its manufacturing is shifting, but the pattern is similar, as production and pollution are “outsourced by China into other up-and-coming industrialized countries like Cambodia, Vietnam, India,” said Davis.

Those countries are bearing the health costs.

The study examined 13 regions of the world and Davis said researchers were surprised levels of harm from emissions that were displaced from one country to another by outsourcing.

Trump order criticized

Davis notes that China’s industrial cities are plagued with pollution, and the country is working to clean up its air.  Yet as China expands its use of “scrubbers” that remove fine particulate matter from industrial emissions, environmentalist are accusing President Donald Trump of reversing the U.S. commitment to clean air.  On March 28, Trump signed a sweeping executive order to increase America’s energy independence and boost American jobs by reducing the federal government’s role in controlling emissions.

“There’s a concern that in the pursuit of economic gains, we’re maybe willing to now sacrifice our environmental quality,” Davis said, noting the United States has long “pointed a finger at China” for its emissions.

The study’s authors say environmental pollution caused by manufacturing, and by worldwide trade, requires a global response that balances the need for clean air and economic growth.
…

Several minutes after a passenger recorded a video watched around the world that showed security officers dragging another passenger off an overbooked United Express flight at Chicago’s O’Hare International Airport, a smaller snippet of video showed an even more troubling scene.

There stood the passenger who had been dragged on his back to the front of the plane, appearing dazed as he spoke through bloody lips and blood that had spilled onto his chin.

“I want to go home, I want to go home,” he said.

The treatment of the passenger on Sunday night prompted outrage and scorn on social media, and anger among some of the passengers on the flight as the unidentified man was evicted.

The incident risks a backlash against United from passengers who could boycott the airline as the busy summer travel season is about to begin. For Chicago, it is another public relations nightmare, adding to its reputation as a city unable to curb a crime wave in some neighborhoods, which President Donald Trump has highlighted with critical tweets.

The embarrassing incident spiraled out of control from a common air travel issue – an overbooked flight. United was trying to make room for four employees of a partner airline, meaning four people had to get off the flight to Louisville.

At first, the airline asked for volunteers, offering $400 and then when that didn’t work, $800 per passenger to relinquish a seat. When no one voluntarily came forward, United selected four passengers at random.

Three deplaned but the fourth, a man who said he was a doctor and needed to get home to treat patients on Monday, refused.

Three men, identified later as city aviation department security officers, got on the plane. Two officers tried to reason with the man before a third came aboard and pointed at the man “basically saying, ‘Sir, you have to get off the plane,’ ” said Tyler Bridges, a passenger whose wife, Audra D. Bridges, posted a video on Facebook.

One of the security officers could be seen grabbing the screaming man from his window seat, across the armrest and dragging him down the aisle by his arms.

Other passengers on Flight 3411 are heard saying, “Please, my God,” “What are you doing?” “This is wrong,” “Look at what you did to him” and “Busted his lip.”

“We almost felt like we were being taken hostage,” said Tyler Bridges. “We were stuck there. You can’t do anything as a traveler. You’re relying on the airline.”

United Airlines’ parent company CEO Oscar Munoz late Monday issued a letter defending his employees, saying the passenger was being “disruptive and belligerent.”

While Munoz said he was “upset” to see and hear what happened, “our employees followed established procedures for dealing with situations like this.”

Chicago’s aviation department said the security officer who grabbed the passenger had been placed on leave.

“The incidence on United Flight 3411 was not in accordance with our standard operating procedure and the actions of the aviation security officer are obviously not condoned by the Department,” the department said in a statement.

After a three-hour delay, United Express Flight 3411 took off without the man aboard.

Airlines are allowed to sell more tickets than seats on the plane, and they routinely overbook flights because some people do not show up.

It’s not unusual for airlines to offer travel vouchers to encourage people to give up their seats, and there are no rules for the process. When an airline demands that a passenger give up a seat, the airline is required to pay double the passenger’s one-way fare, up to $675 provided the passenger is put on a flight that arrives within one to two hours of the original. The compensation rises to four times the ticket price, up to $1,350, for longer delays.

When they bump passengers, airlines are required to give those passengers a written description of their compensation rights.

Last year, United forced 3,765 people off oversold flights and another 62,895 United passengers volunteered to give up their seats, probably in exchange for travel vouchers. That’s out of more than 86 million people who boarded a United flight in 2016, according to government figures. United ranks in the middle of U.S. carriers when it comes to bumping passengers.

ExpressJet, which operates flights under the United Express, American Eagle and Delta Connection names, had the highest rate of bumping passengers last year. Among the largest carriers, Southwest Airlines had the highest rate, followed by JetBlue Airways.

___

Associated Press Writer David Koenig contributed to this report.

AP-WF-04-11-17 1128GMT
…

President Donald Trump’s relentless push for more manufacturing jobs has forced the auto industry into a delicate dance of contradictions in order to keep him happy, tell the truth, and avoid alienating customers in both red and blue states.

Toyota did the waltz with Monday’s announcement that it would spend $1.33 billion to retool its gigantic factory in Georgetown, Kentucky, an investment in the heart of Trump country that has been planned for years.

Trump wasn’t included in a company statement sent on Friday in advance of the announcement, but Kentucky’s governor and both of the state’s U.S. senators were quoted. In a paragraph added Sunday evening, Trump claimed credit for the investment, saying it is “further evidence that manufacturers are now confident that the economic climate has greatly improved under my administration.”

The company said the Trump quote was added at the administration’s request, but the White House said Toyota requested it and pointed to a poll of manufacturers showing record optimism. Later Monday, Toyota said that it had asked the White House for a Trump quote.

Either way, an investment of that size takes years to plan, and Toyota confirmed that it’s been in the works four or five years, long before Trump was elected. The company is switching its midsize Camry sedan, long the top-selling car in America, to new underpinnings that make it more modern and fun to drive. Although the investment doesn’t add jobs, it sustains 8,200 workers at the plant, which also manufactures the Toyota Avalon and Lexus ES 350 cars.

The dealings with Toyota show how businesses — especially automakers whose brands cater to both ends of the political spectrum — must tread carefully when dealing with Trump or other politicians. Depending on their response, they run the risk of angering a president who has authority to regulate their industry or alienating customers who are on both sides of the political divide.

“That’s kind of the reality of the situation you’re operating in,” said Joseph Holt, a University of Notre Dame associate professor who specializes in business ethics and leadership. “I think it’s a shame that they have to do this dance, but I understand why they’re doing it.”

All politicians play the same game as Trump, taking credit for accomplishments they had nothing to do with, said Erik Gordon, a business professor at the University of Michigan. What makes Trump unique is the demand for jobs announcements was done publicly rather than in private conversations, Gordon said.

Many CEOs grudgingly supported President Barack Obama’s health care plan even though they disagreed with it, Gordon said.

“With President Trump, the difference is the volume is up to 11 or 12 instead of at 10,” he said. “I don’t find him to be that different in terms of what he wants credit for, and putting the arm on people to get on his program, other than he does it publicly.”

Detroit automakers are in the most precarious position, Gordon said, because they are perceived as more American. Take General Motors. Its Chevrolet brand, with the top-selling Silverado pickup truck, caters largely to America’s mid-section, which largely voted for Trump. But GM’s Cadillac luxury brand wanted so much to distance itself from the Midwest that it moved its offices to Manhattan, which supported Democrat Hillary Clinton.

If GM either confronts Trump or is continually in his Twitter sights, that could upset the automaker’s lucrative customer base in the Midwest. If the company is too supportive, it could hurt GM’s efforts to grow Cadillac sales on the mostly blue coasts.

That’s why with few exceptions, GM, Ford and Fiat Chrysler have made jobs announcements that largely were in the works long ago, Gordon said.

Because the country is so politically polarized, a social-media fueled PR mistake for or against an issue could touch off a boycott that can quickly hurt a company, Gordon said.

“Now the companies are really under the magnifying glass,” he said. “Many customers want to know who you are and what you stand for before they even think about your product.”

Holt and others say companies shouldn’t allow such deception and would be better off in the long run by not playing politics.

While the Trump administration was showing a commitment to manufacturing with the announcement, it may send a different message to government regulators such as the Environmental Protection Agency or the Occupational Safety and Health Administration should there be any problems with a factory, said Robert Weissman, president of the consumer advocacy group Public Citizen.

“Do those agencies feel constrained from enforcing the law because the president has just associated himself with that company or investment?” Weissman asked. “It’s just on its face inappropriate.”

 
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When they are not tending to international affairs, diplomats based in Havana can be found these days stewing in interminable queues at gas stations and concocting ways to increase the octane in fuel as Cuba’s premium gasoline shortage takes its toll.

Cuba sent around an internal memo last week advising that it would restrict sales of high-octane, so-called “special fuel” in April. That is not an issue for most Cuban drivers, whose vintage American cars and Soviet-era Ladas use regular fuel.

But it is for the embassies that use modern cars whose engines could be damaged by the fuel at most Havana gas stations. So the diplomats are taking a leaf out of the book of Cubans, used to such shortages, and becoming resourceful.

Given the U.S. trade embargo, Cubans have for decades had to invent new ways to keep their cars on the road, replacing original engines with Russian ones and using homemade parts.

“I bought octane booster, and the embassy has bought lubricants, meant to help the motor deal with rubbish gasoline,” said one north European diplomat, who got a relative to bring the booster in his luggage given it is unavailable in Cuba.

“At the moment we are using the car that runs on diesel, so we can ‘survive’,” said an Eastern European diplomat.

Cuba has not announced the measure officially yet. According to the memo, “the special fuel remaining in stock at gas stations from April will only be sold in cash and to tourists until the inventory is depleted.”

“It’s very serious. I have already suspended a trip to Santiago de Cuba for fear of lack of gas,” said one Latin American diplomat, adding that it seemed like the problem would last. “Diplomats are very worried.”

Some embassies in Havana have people scouting out which stations still have some higher-octane fuel and are sending around regular updates to staff. One gas station worker said they were getting small deliveries of fuel each day still.

The embassies are also advising people to carpool or use the diplomatic shuttle.

Meanwhile the European Union has requested from the ministry of foreign affairs that one or more service centers be set aside for diplomats with special gas, according to a European diplomat.

Cuba has become increasingly reliant on its socialist ally Venezuela for refined oil products but the latter has faced its own fuel shortage in recent weeks.

Meanwhile, the Communist-ruled island cannot easily replace subsidized Venezuelan supplies as it is strapped for cash.

Although the memo referred to April, it is not clear how long the shortage will last. Cubans joke that once something disappears in Cuba, it is never to return, referring to products that have disappeared from their ration book like cigarettes, beef and condensed milk.

The Peugeot dealership in Havana has sent its clients lists of technical tips how to protect their motors while using lower-grade gasoline, including more frequent maintenance and ensuring vehicles at running at optimum temperature before driving.

The shortage is also impacting others using modern cars such as taxi drivers, tourists and workers at joint ventures.
…

The airlines are getting better at sticking to their schedules and are losing fewer bags. Their customers seem to be complaining less often.

Those are the findings of an annual report on airline quality being released Monday by researchers at Wichita State University and Embry-Riddle Aeronautical University.

The researchers use information compiled by the U.S. Department of Transportation to rate the airlines for on-time performance, baggage handling, bumping passengers off oversold flights, and complaints filed with the government.

They planned to release their list of the best airlines later Monday.

The report’s general observations:

On time performance: The percentage of flights that arrived on time or close enough rose to 81.4 percent in 2016 from 79.9 percent in 2015. Of 12 leading U.S. carriers, only American, JetBlue and Virgin America got worse.

Lost bags: The rate of bags being lost, stolen or delayed fell 17 percent.

Bumping passengers: Your chances of getting bumped by the airline dropped 18 percent, which doesn’t include people who voluntarily gave up their seat for money or a travel voucher.

Fewer complaints: The rate of complaints filed with the government dropped about one-fifth, with complaints rising only for Hawaiian and Virgin America.

The official complaint rates don’t include the larger number of complaints that passengers file directly with the airline. The airlines are not required to report those figures.

Clearly, however, airlines still have a perception problem. It’s not hard to find passengers who complain about a miserable flight, a missed connection, or shabby treatment by airline employees. Comments like that abound on Twitter.

“People don’t look at the numbers,” said Dean Headley, a marketing professor at Wichita State and co-author of Monday’s report. “They just know what happened to them, or they hear what happened to other people.”

The Wichita State and Embry-Riddle researchers have been doing their report for more than 25 years, making it useful for comparing airlines. But some observers of the airline industry dismiss their number-crunching approach, and there are many other surveys that purport to rank the airlines.

The Transportation Department counts a flight as being on time even if it arrives up to 14 minutes late. “Airlines are happy with that (grace period) because it makes them look better and misleads the passenger,” said aviation consultant Michael Baiada. He said airlines can do better, and besides, travelers pay to be on time — not 14 minutes late.

TripAdvisor releases rankings

More broadly, a statistical analysis of government data “really doesn’t take into consideration how the customer is treated,” said Bryan Saltzburg, an executive with travel site TripAdvisor LLC. “`How comfortable are they on the plane? How helpful is the staff? What’s the value for what the customer paid?”

TripAdvisor released its own airline rankings Monday, which it said were based on analysis of “hundreds of thousands” of reviews posted by users. It placed JetBlue and Alaska Airlines among the top 10 in the world, and it rated Delta ahead of American and United among the largest U.S. carriers.

Other outfits including J.D. Power and Skytrax also put out ratings. Airlines boast when they win. Recently, American Airlines started putting stickers on all 968 of its planes to note that a trade publication, Air Transport World, named it airline of the year.

 
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India and Bangladesh signaled deepening ties Saturday as New Delhi committed a $4.5-billion line of credit to Dhaka for development projects, and the two countries signed their first-ever pact on defense cooperation. 

Indian Prime Minister Narendra Modi announced an additional $500 million in credit for Bangladesh to buy military equipment from India during the visit to New Delhi by Bangladeshi Prime Minister Sheikh Hasina.

Calling India a “long standing and trusted development partner,” Modi said that the new credit lines “bring our resources allocation to Bangladesh to more than $8 billion over the past six years.” 

Both leaders reaffirmed their close ties during the Bangladeshi prime minister’s first visit to India in seven years, with Modi speaking of a “golden era” in their friendship and Hasina saying their friendly ties would benefit South Asia.

The two countries signed 22 agreements, including one on civil nuclear cooperation that aims to help Bangladesh develop its civilian nuclear program.

Many in New Delhi see the deal for defense cooperation over the next five years as the key breakthrough that will help reduce Bangladesh’s reliance on China for its military needs.

Worried by the growing Chinese influence in its neighborhood, New Delhi has made a concerted push in recent years to grow strategic ties with neighboring countries. Bangladesh’s purchase of two submarines from China last year deepened those concerns in India.

Calling the defense pact a feather in India’s cap, Sukh Deo Muni, a South Asia expert at New Delhi’s Institute of Defense Studies and Analyses, said,“India does not want China to consolidate defense ties just next to its belly, that is true.”

Although the political opposition in Bangladesh has denounced the pact, independent analysts in Dhaka was optimistic that it will help achieve balance.

“Approximately 80 percent dependency at this moment you see on China, so it should be brought down. That actually reduces our vulnerability,” said Abdur Rashid, Executive Director of the Institute of Conflict, Law and Development Studies in Dhaka. “If one is interrupted we can depend on the other.”

 A new rail link between the Indian city of Kolkata and Khulna in Bangladesh, and a bus link between Kolkata and Dhaka also were inaugurated, while another old rail link was restored to coincide with Hasina’s visit. The Bangladeshi leader said the greater connectivity is vital for the region’s development.

A key water-sharing agreement that Dhaka has long pushed for, however, eluded Hasina.

Although New Delhi favors such an arrangement, opposition from West Bengal state in India, through which the Teesta River flows into Bangladesh, has prevented the two countries from clinching a deal.

As Modi assured her of his commitment to conclude a deal, the Bangladeshi leader sounded a note of optimism. “I believe we shall be able to get India’s support in resolving these issues expeditiously,” said Hasina.

The two countries have had a close relationship since 1971, when India helped Bangladesh gain independence from Pakistan following a bloody nine-month war.

 
…

India and Bangladesh signaled deepening ties Saturday as New Delhi committed a $4.5 billion line of credit to Dhaka for development projects, and the two countries signed their first-ever pact on defense cooperation. 

Indian Prime Minister Narendra Modi announced an additional $500 million in credit for Bangladesh to buy military equipment from India during the visit to New Delhi by Bangladeshi Prime Minister Sheikh Hasina.

Calling India a “long standing and trusted development partner,” Modi said that the new credit lines “bring our resources allocation to Bangladesh to more than $8 billion over the past six years.” 

Both leaders reaffirmed their close ties during the Bangladeshi prime minister’s first visit to India in seven years, with Modi speaking of a “golden era” in their friendship and Hasina saying their friendly ties would benefit South Asia.

The two countries signed 22 agreements, including one on civil nuclear cooperation that aims to help Bangladesh develop its civilian nuclear program.

Many in New Delhi see the deal for defense cooperation over the next five years as the key breakthrough that will help reduce Bangladesh’s reliance on China for its military needs.

Worried by the growing Chinese influence in its neighborhood, New Delhi has made a concerted push in recent years to grow strategic ties with neighboring countries. Bangladesh’s purchase of two submarines from China last year deepened those concerns in India.

Calling the defense pact a feather in India’s cap, Sukh Deo Muni, a South Asia expert at New Delhi’s Institute of Defense Studies and Analyses, said,“India does not want China to consolidate defense ties just next to its belly, that is true.”

Although the political opposition in Bangladesh has denounced the pact, independent analysts in Dhaka was optimistic that it will help achieve balance.

“Approximately 80 percent dependency at this moment you see on China, so it should be brought down. That actually reduces our vulnerability,” said Abdur Rashid, Executive Director of the Institute of Conflict, Law and Development Studies in Dhaka. “If one is interrupted we can depend on the other.”

 A new rail link between the Indian city of Kolkata and Khulna in Bangladesh, and a bus link between Kolkata and Dhaka also were inaugurated, while another old rail link was restored to coincide with Hasina’s visit. The Bangladeshi leader said the greater connectivity is vital for the region’s development.

A key water-sharing agreement that Dhaka has long pushed for, however, eluded Hasina.

Although New Delhi favors such an arrangement, opposition from West Bengal state in India, through which the Teesta River flows into Bangladesh, has prevented the two countries from clinching a deal.

As Modi assured her of his commitment to conclude a deal, the Bangladeshi leader sounded a note of optimism. “I believe we shall be able to get India’s support in resolving these issues expeditiously,” said Hasina.

The two countries have had a close relationship since 1971, when India helped Bangladesh gain independence from Pakistan following a bloody nine-month war.

 
…