Month: February 2018

The U.S. negotiator for regional content requirements in autos flew back to Washington from a NAFTA round in Mexico on Monday to talk with car companies, officials said, in a development some hoped would lead to progress on the contentious issue.

Three Mexican, Canadian and U.S. trade officials said the negotiator, Jason Bernstein, had been called back, with two of the officials saying he was there to meet U.S. automakers. Another said he would also meet U.S. Trade Representative Robert Lighthizer, and was due back later in the week.

The change in plans disrupted a schedule for talks early in the week about a proposal by the administration of U.S.

President Donald Trump to make automakers source more from the region and the United States, a major sticking point the industry warns would disrupt supply chains and raise costs.

Mexican negotiators have said the auto content issue must be resolved in large part between the White House and the Big Three Detroit automakers that dominate the industry.

“What I’ve heard is that he’s back in Washington because apparently they are meeting with the Detroit three. If that’s the case, that’s really positive,” said Flavio Volpe, president of the Toronto-based Automotive Parts Manufacturers Association.

 

“The timing is awkward. But if USTR is finally talking to those companies it’s something that we’ve been asking for for months,” Volpe said, referring to the United States Trade Representative (USTR).

U.S. trade officials and a Mexican auto industry official in Mexico City said they also believed the fact Bernstein had been called to Washington was a positive development for the talks to renegotiate the 1994 North American Free Trade Agreement.

A seventh round of talks began on Sunday with the three sides aiming to finish reworking less contentious chapters while also meeting to discuss the trickiest subjects blocking progress to rework the pact that underpins $1.2 trillion in annual trade.

“We’re hopeful to make quite a bit if progress this round. So we’ll see how it goes,” said Steve Verheul, Canada’s chief

negotiator as he arrived at the negotiations on Monday.

Two auto lobbyists in the United States, who spoke on background, said they did not believe there was a joint meeting scheduled with the Detroit auto companies but individual consultations might happen.

Mexico’s government is concerned that a lack of progress on the automotive content issue could hurt the wider renegotiation, a former official still familiar with the process said.

Seeking to break the deadlock, the Mexican government has said it would put forward a proposal on rules of origin during the current round of talks, but a Mexican official said on Monday no new ideas had been presented so far.

The renegotiation began last year at the behest of Trump who said the agreement must be overhauled to better favor American interests or Washington would quit the accord. The latest round has been clouded by renewed tension between Mexico and Trump over his planned border wall.

Mexico has consistently rejected paying for the wall, and its government had hoped to arrange a meeting between President Enrique Pena Nieto and Trump in the next few weeks. However, a senior U.S. official said over the weekend that plan had been postponed after a phone call between the two soured over the wall earlier this month.

Mexico’s government has not commented officially on the derailment of the Trump-Pena Nieto meeting, but Juan Pablo 

Castanon, head of the powerful CCE business lobby, was less reticent as he took stock of the unfolding NAFTA negotiations in Mexico City.

“Obviously, the cancellation of the Mexican president’s trip to the United States is an important element in the negotiations: it’s politics that can help us resolve the technical issues we’re moving forward on,” Castanon said.

Castanon said several chapters are close to being finished, including measures on e-commerce, telecommunications and sanitary standards for agricultural products. Others close to the talks believe the energy chapter could also be concluded.

Officials do not anticipate major breakthroughs on other intractable issues such as agriculture and dispute resolution mechanisms in the Mexico City round, due to run until March 5.

There was little sign of compromise on any issues early on, with a senior Canadian agriculture official pushing back against U.S. demands to dismantle Canadian protections for the dairy and poultry sectors known as supply management.

“When it comes to supply management, we believe there can be no concession,” said Jeff Leal, the minister of agriculture, food and rural affairs for the province of Ontario. 
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South Korean President Moon Jae-in is continuing efforts to broker talks between the U.S. and North Korea to reduce tensions over the North’s nuclear program, despite facing reluctance from Washington and Pyongyang, and increasing concerns at home.

On Monday, North Korea expressed a willingness for talks with the United States, but did not clarify whether Pyongyang is prepared to address halting and eventually dismantling its threatening nuclear program. The support for dialogue came from Kim Yong Chol, the controversial head of the visiting North Korean delegation to the PyeongChang Olympics closing ceremony. Kim has been accused of orchestrating a North Korean torpedo attack on a South Korean warship in 2010 that killed 46 sailors.

U.S. President Donald Trump responded to the North’s sudden openness to dialogue with skepticism on Monday, saying, ” We’ll see what happens” and that the “right conditions” must first be in place before talks can proceed.

Video – Trump: US Willing to Talk with North Korea ‘Under Right Conditions’

South Korea’s Foreign Ministry on Tuesday said it is working to address Washington’s concerns.

“Our government will continue to make efforts to persuade North Korea to respond promptly to the U.S., North Korea dialogue, while at the same time closely communicating and consulting with the U.S. on the future direction of North Korea’s nuclear diplomacy,” said Foreign Affairs Ministry spokesman Noh Kyu-duk.

Conflicting strategies

While North Korea now says it is willing to talk, its defiant rhetoric, and the numerous missile launches and two nuclear tests conducted in the last year, indicate a more threatening posture. Kim Jong Un responded to increasing international sanctions by declaring his country a nuclear weapons state, and set upon developing an operational intercontinental ballistic missile capability to target the U.S. mainland.

The Trump administration responded with a “maximum pressure” campaign, imposing economic sanctions, along with an emphasis on the threat of military action, if necessary, to force the Kim government to give up its nuclear program.

Last week the President issued new unilateral sanctions on companies and vessels linked to North Korean shipping trade to further restrict Pyongyang’s ability to bypass sanctions, by obtaining oil and selling coal, using ship to ship transfers. 

Trump’s insistence that conditions first be met before talks can proceed supports his “maximum pressure” approach, but it also seemed to pull back from the position voiced by Vice President Mike Pence after he visited South Korea to lead the U.S. Olympic delegation for the opening ceremony.  Pence said the U.S. would be open to exploratory talks without conditions, while maintaining sanctions pressure.

The mixed messages coming out of Washington may suggest that Trump has not been entirely supportive of President Moon’s very assertive diplomatic outreach to engage North Korea during the Olympics.

“I think the United States government was not completely happy with the degree to which the U.S. government was consulted or not consulted before the South Koreans invited in the North Korean officials and athletes into the games,” said Denny Roy, an Asia Pacific security expert with the East-West Center in Honolulu.

Editorial caution

Moon’s critics at home also voiced concern that Pyongyang is cooperating with Seoul in hopes of dividing the U.S., South Korea alliance, and to weaken international support for sanctions, without making any significant concession to end its nuclear program.

South Korean newspapers on Tuesday urged President Moon to proceed with caution in pursuing his engagement approach to North Korea. The Korea Herald, in an editorial said, “Korea must be denuclearized, but South Korea must not rush dialogue” before the North fully commits.  

An editorial in The Korea Times said, it is “too early to expect” the U.S. and North Korea to “start a serious and meaningful dialogue,” but did support exploratory talks. 

And a Korea JoongAng Daily editorial said, “we cannot weaken sanctions when North Korea does not show genuine actions toward denuclearization.”

Without diplomatic progress, tensions on the Korean Peninsula are likely to soon rise again. North Korea has not conducted any missile or nuclear tests in the last few months. The U.S. and South Korea also postponed joint military exercises during the Olympics. But the drills are expected to resume sometime in April. On Tuesday the North Korean official news agency KCNA said,  “If the U.S. resumes the joint military exercises, we will resolutely counter them.”

Lee Yoon-jee in Seoul contributed to this report.
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U.S. President Donald Trump on Monday said he wants to bring the steel industry back to America even if it means applying tariffs to imports from other countries.

“I want to bring the steel industry back into our country.

If that takes tariffs, let it take tariffs, OK? Maybe it will cost a little bit more, but we’ll have jobs,” Trump told a meeting at the White House with state governors.

The U.S. Commerce Department has recommended Trump impose curbs on steel and aluminum imports from China and other countries. On Friday, the White House had said Trump has not yet made a final decision on the matter.
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Survivors and others are set to gather at ground zero for a solemn tribute to victims of the first terror attack on the World Trade Center, the deadly bombing 25 years ago.

Monday is the anniversary of the blast, which killed six people, one of them pregnant. The planned commemoration includes a Mass at a church near the trade center and a ceremony on the 9/11 memorial plaza, with the reading of victims’ names and a moment of silence at 12:18 p.m., when the bomb exploded and became a harbinger of terror at the twin towers.

“While overshadowed by 9/11, the 1993 bombing represented a pivotal moment in the history of the World Trade Center, in the history of New York City, and, frankly, our own national reckoning with terrorism in a global age,” said Sept. 11 museum president Alice Greenwald, whose institution has a permanent exhibition on the bombing and a special installation to commemorate the anniversary. “It had so many of the elements that we would later come to associate with 9/11.”

The bomb, in an underground parking garage, was set by Muslim extremists who sought to punish the U.S. for its Middle East policies, according to federal prosecutors. Six bombing suspects were convicted and are in prison, including accused ringleader Ramzi Yousef — a nephew of self-proclaimed 9/11 mastermind Khalid Sheikh Mohammed. A seventh suspect in the bombing remains at large.

An estimated 50,000 people fled the blacked-out twin towers, some groping their way down smoky stairs, others rescued from stalled elevators or plucked from rooftops by police helicopters. More than 1,000 were injured.

A memorial fountain dedicated to the 1993 bombing was crushed in the attacks that destroyed the towers on Sept. 11, 2001. But bombing victims’ names are now inscribed on one of the memorial pools that bear the names of the nearly 3,000 people killed on 9/11.
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The U.S. Supreme Court on Monday dealt a setback to President Donald Trump, requiring his administration to maintain protections he has sought to end for hundreds of thousands of immigrants brought illegally into the United States as children.

The justices refused to hear the administration’s appeal of a federal judge’s Jan. 9 injunction that halted Trump’s move to rescind a program that benefits immigrants known as “Dreamers” implemented in 2012 by his Democratic predecessor, Barack Obama.

Under Trump’s action, the protections were due to start phasing out beginning in March.

In a brief order, the justices did not explain their reasoning, but said the appeal was “denied without prejudice,” indicating they will maintain an open mind on the underlying legal issue still being considered by a lower court. The high court also said it expects that appeals court to “proceed expeditiously to decide this case.”

Under the Deferred Action for Childhood Arrivals (DACA) program, roughly 700,000 young adult, mostly Hispanics, are granted protect from deportation and given work permits for two-year periods, after which they must re-apply. A total of about 1.8 million people are eligible for the program, a sizable fraction of the more than 11 million immigrants living in the United States illegally.

Trump’s administration had appealed a Jan. 9 nationwide injunction by San Francisco-based U.S. District Judge William Alsup, who ruled that the DACA program must remain in place while the litigation is resolved.

The administration had challenged a nationwide injunction by San Francisco-based U.S. District Judge William Alsup, who ruled that DACA must remain in place while the litigation is resolved. In an unusual move, the administration appealed directly to the Supreme Court instead of going first to a federal appeals court.

Alsup ruled that the challengers, including the states of California, Maine, Maryland and Minnesota and Obama’s former homeland security secretary Janet Napolitano, were likely to succeed in arguing that the administration’s decision to end DACA was arbitrary.

Justice Department spokesman Devin O’Malley said in a statement that the administration will continue to defend the Department of Homeland Security’s “lawful authority to wind down DACA in an orderly manner.”

O’Malley said that “while we were hopeful for a different outcome,” the high court rarely agrees to take up cases before a lower court has ruled, “though in our view it was warranted for the extraordinary injunction requiring the Department of Homeland Security to maintain DACA.”

The DACA dispute is the second major case the Supreme Court will hear in the coming months arising from Trump’s immigration policies. The justices are due to hear arguments in April on the legality of his latest travel ban order barring entry to people from several Muslim-majority nations.

 

Congress so far has failed to pass legislation to address the fate of the “Dreamers,” including a potential path to citizenship.

Trump’s move to rescind DACA prompted legal challenges by Democratic state attorneys general and various organizations and individuals in multiple federal courts. His administration argued that Obama exceeded his powers under the Constitution when he bypassed Congress and created DACA.

On Feb. 13, a second U.S. judge issued a similar injunction ordering the Trump administration to keep DACA in place. U.S. District Judge Nicholas Garaufis in Brooklyn acted in a lawsuit brought by plaintiffs including a group of states led by New York.

Alsup and Garaufis did not say that the administration could not at some point end the program, only that there was evidence it did not follow the correct procedures in doing so.

The rulings allow those who had previously applied for protections and whose two-year status was soon to expire to apply beyond the deadline set by the administration in September.

The original plan put on hold by the court rulings said that only those who re-applied by October and whose status was due to expire by March 5 could re-apply.

The administration is not processing new applications.
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