YCLOAK

South Korea’s unemployment rate hit an eight-year high in August as mandatory minimum wages rose, adding to economic policy frustrations and political challenges for President Moon Jae-in whose approval rating is now at its lowest since inauguration.

The unemployment rate rose to 4.2 percent in August from 3.8 percent in July in seasonally adjusted terms as the number of unemployed rose by 134,000 people from a year earlier.

This was the labor market’s worst performance since January 2010, when the economy was still reeling from the global financial crisis, when 10,000 jobs were lost.

Finance Minister Kim Dong-yeon said on Wednesday the government will need to adjust its wage policies, signaling some future soft-pedaling in the drive to raise minimum wages.

“(The government) will discuss slowing the speed of minimum wage hikes with the ruling party and the presidential office,” Kim Dong-yeon told a policy meeting in Seoul, adding he did not expect a short-term recovery in the job market.

Experts say the uproar over jobs could also cost Moon considerable political capital as he pursues closer ties with Pyongyang, as any good news from an inter-Korean summit may not be enough to offset public discontent over the lack of jobs and soaring housing prices.

More than 60 percent of respondents in a Gallup Korea survey criticized Moon’s handling of the economy, including his ‘inability to improve the livelihoods of ordinary citizens’ and ‘minimum wage increases.’

The jobs report showed the labor-intensive retail and accommodation sector, which lost 202,000 jobs in August from a year earlier, was the hardest hit.

A total 105,000 jobs were lost from manufacturing industries, the report said.

However, the agriculture, construction and transport sectors saw a rise in the number of employed, partly offsetting the rise in the number of workers laid off.

The overall number of employed people rose by just 3,000 – also the worst since January 2010.

Each month’s worsening jobs report has sparked a strong public backlash, with President Moon Jae-in’s approval rating falling below 50 percent for the first time on Sept. 7.

A weekly Gallup Korea survey released on Friday showed Moon’s support fell 4 percentage points to 49 percent, the lowest since he took office in May 2017.

“At this rate, we may not see any gains in the number of employed in September or the month after that,” said Oh Suk-tae, an economist at Societe Generale.

Oh said economists at the Korea Development Institute, a state-run think tank, believed this year’s 16 percent increase in the minimum wage – the biggest jump in nearly two decades – was discouraging employers from hiring.

“The president should be held responsible for this, nothing could change the trend unless the boss changes his mind about minimum wage hikes,” Oh said.

The workforce participation rate declined slightly to 63.4 percent from 63.6 percent in July, as more jobs were lost than created, Statistics Korea data showed.

 
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In Iraq, a major Middle East grain buyer, will cut the irrigated area it plants with wheat by half in the 2018-2019 growing season as water shortages grip the country, a government official told Reuters.

Drought and dwindling river flows have already forced Iraq to ban farmers from planting rice and other water-intensive summer crops. Water scarcity was one of the issues galvanizing street protests in the country this year.

An investigation by Reuters in July revealed how Nineveh, Iraq’s former breadbasket, was becoming a dust bowl after drought and years of war.

This latest move is likely to significantly raise wheat imports.

Deputy Agriculture Minister Mahdi al-Qaisi said irrigated land grown with winter grains, namely wheat and barley, would be halved.

“The shortage of water resources, climate change and drought are the main reasons behind this decision, our expectation is the area will shrink to half,” Qaisi said in an interview.

Iraq’s agricultural plan included 1.6 million hectares of wheat last 2017-2018 season. Of those, around one million hectares were irrigated and the rest relied on rainfall.

“We expect that the irrigated wheat area falls to half of what it was last year,” Qaisi said, implying plantings of 500,000 hectares.

The cut is expected to lower the country’s wheat production by at least 20 percent, implying a significantly higher import bill Fadel al-Zubi, the U.N. Food and Agriculture Organization Iraq Representative said.

Iraq already has an import gap of more than one million tonnes per year, with annual demand at around 4.5 million to 5 million tons.

“Imports will go up as a result of cutting down on production and also as a result of population increase,” Zubi said but he declined to give an exact estimate for size of imports next year.

Haidar al-Abbadi, the head of Iraq’s General Union of Farmers, confirmed the cut saying water shortage was the main reason behind it.

“Irrigated wheat will reach 2 million donhums (500,000 hectares) down from around 4 million last season,” he said.

Qaisi said it was too early to tell the area of land that could be grown with wheat relying on rainfall this season but he hoped it would make up for some of the shortfall.

“We will follow a few programs to increase the crop, like raising yields and bringing Nineveh province back to more production … that can partly make up for shortfall,” he said.

But the rains failed Iraq’s Nineveh last season with the government procuring a little over 100,000 tonnes of wheat this year from a region that used to produce close to one million tons annually before Islamic State took over in 2014.

Iraq imports wheat to supply a rationing program created in 1991 to combat U.N. economic sanctions, including flour, cooking oil, rice, sugar and baby milk formula.

The trade ministry is responsible for procuring strategic commodities, including wheat, for the program.

Trade ministry officials were not immediately available for comment on a potential rise in imports.
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Residents in a Bangkok neighborhood are trying out a renewable energy trading platform that allows them to buy and sell electricity between themselves, signaling the growing popularity of such systems as solar panels get cheaper.

The pilot project in the center of Thailand’s capital is among the world’s largest peer-to-peer renewable energy trading platforms using blockchain, according to the firms involved.

The system has a total generating capacity of 635 KW that can be traded via Bangkok city’s electricity grid between a mall, a school, a dental hospital and an apartment complex.

Commercial operations will begin next month, said David Martin, managing director of Power Ledger, an Australian firm that develops technology for the energy industry and is a partner in the project.

“By enabling trade in renewable energy, the community meets its own energy demands, leading to lower bills for buyers, better prices for sellers, and a smaller carbon footprint for all,” he said.

“It will encourage more consumers to make the switch to renewable energy, as the cost can be offset by selling excess energy to neighbors,” he told the Thomson Reuters Foundation.

Neighborhoods from New York to Melbourne are upending the way power is produced and sold, with solar panels, mini grids and smart meters that can measure when energy is consumed rather than overall consumption.

The World Energy Council predicts that such decentralized energy will grow to about a fourth of the market in 2025 from 5 percent today.

Helping it along is blockchain, the distributed ledger technology that underpins bitcoin currency, which offers a transparent way to handle complex transactions between users, producers, and even traders and utilities.

Blockchain also saves individuals the drudgery of switching between sending power and receiving it, said Martin.

For the pilot in Bangkok’s upmarket Sukhumvit neighborhood, electricity generated by each of the four locations will be initially used within that building. Excess energy can be sold to the others through the trading system.

If there is a surplus from all four, it will be sold to the local energy storage system, and to the grid in the future, said Gloyta Nathalang, a spokeswoman for Thai renewable energy firm BCPG, which installed the meters and solar panels.

Thailand is Southeast Asia’s leading developer of renewable energy, and aims to have it account for 30 percent of final energy consumption by 2036.

The energy ministry has encouraged community renewable energy projects to reduce fossil fuel usage, and the regulator is drafting new rules to permit the trade of energy.

The Bangkok Metropolitan Electricity Authority forecasts “peer-to-peer energy trading to become mainstream for power generation in the long run,” a spokesman told reporters.

BCPG, in partnership with the Thai real estate developer Sansiri, plans to roll out similar energy trading systems with solar panels and blockchain for a total capacity of 2 MW by 2021, said Gloyta.

“There are opportunities everywhere – not just in cities, but also in islands and remote areas where electricity supply is a challenge,” she said.
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Young people are driving the growth of businesses that benefit society and the environment, the organizer of a global gathering of ethical entrepreneurs said as it opens Wednesday.

Some 1,500 people are meeting in Edinburgh as the 10th Social Enterprise World Forum — one of the most important networking events for the sector — returned to its birthplace after being hosted in Melbourne, Seoul and Rio De Janeiro.

“The key thing [that’s changed] in the decade is the transformational views of, and engagement with, young people,” Gerry Higgins, head of CEIS, which convenes the forum, told Reuters.

“Increasingly, young people are looking for careers of purpose, looking at social enterprise as a way of being involved in business and doing social good — and that has to be significant and heartening and positive.”

Scotland is the only country globally with a dedicated 10-year strategy to support social enterprises, or businesses that seek to make a profit while also doing good.

The country of 5 million has almost 6,000 social enterprises, providing about 80,000 jobs, the government says, many of them in poor rural communities.

Higgins, who has worked in the sector for more than 30 years, said he was encouraged by a rise in the number of universities teaching ethical entrepreneurs as well as growing interest from governments around the world.

Scores of universities, from Hong Kong and India to Greece and South Africa, now teach students about social enterprises, typically through work placements or incubating their startups.

Taiwan is sending more than 60 delegates to the forum as the government regards businesses with a social mission “as a way of reaching young people,” said Higgins.

“Ten years ago, when we pitched up in countries speaking with our partners to their government about social enterprise, God it was a hard sell,” he said.

But politicians are increasingly providing ethical firms with policy support, like the rest of the business sector, because they recognize the economic benefits they can deliver, he said.

“There are a lot of communities and individuals being supported by social enterprises around the world in a more sustainable way than existed 10 years ago,” he said.

“Ten years isn’t a long time in the growth of a business movement. We’re really at the start of the work of creating a global business model that’s used by an increasing number of people coming into the market.”
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Plans by South Africa’s government to change the law to allow land expropriation without compensation have provoked an emotional response, even reaching the ears of President Donald Trump, who signaled his disapproval last month in a controversial tweet in which he ordered U.S. officials to investigate the situation.

South Africa’s government says it may change the constitution to allow expropriation of some land without compensation, in a bid to redress historical wrongs that left land mostly in the hands of the white minority. Hearings began last month to look into the feasibility of expropriation without compensation. President Cyril Ramaphosa supports the idea and says any expropriation will only happen if land transfer does not harm the economy or the nation’s food security.

 

Farmers, many of whom belong to the white minority, say they live in fear of losing their land; meanwhile, pro-expropriation activists say returning land to members of the traditionally marginalized black majority is only right. And some analysts say this is nothing but a political ploy as the ruling party faces a tough election next year.

The farm

Casper Willemse grew up working a 2,000-hectare maize farm about an hour south of Johannesburg. For years, he’s toiled in the fields from sunup to sundown, as five generations of his family did before him.

 

He always thought he would die here, and be buried alongside them.

“I’m the sixth generation that was born on this farm,” he said. “My children is the seventh … We are farmers, from the morning until noon to night.”

 

The government hasn’t publicly identified which properties, if any, it will target.

Groups like AfriForum, which calls itself a civil rights watchdog with a focus on the white Afrikaans-speaking minority, have circulated what they say are government lists of potential seizures, but the government denies those.

AfriForum says their biggest fear is of the economic impact of such a policy. But even without that, they say talk about expropriation has provoked a rise in illegal land seizures. The group is among many critics of the plan who say they fear expropriation without compensation will hurt South Africa’s economy and will cause the same economic spiral as was seen in neighboring Zimbabwe, after that country began a series of seizures from white farmers nearly two decades ago.

 

“We are seeing an increase in land invasion throughout the country,” said Ian Cameron, the group’s head of community safety. “So there is a definite threat to property rights at the moment. And the uncertainty being created by government increases that problem.”

Willemse said the uncertainty is what fills him with anxiety – and about more than just his future. In the meantime, he said, he has to carry on: he employs 14 people, and can’t leave them hanging. Besides, he said, he has no backup plan.

He agreed that South Africa’s violent, unequal past was wrong. But why, he asked, should he pay the price?

 

“Taking something without compensation is nothing but stealing,” he said. “Buying the land, and giving that to somebody else, that’s a different story. But just taking it for political reasons, and giving it away – it’s not going to yield anymore, because that guy that’s going to get it, they don’t have passion about it, they don’t have knowledge, they don’t have resources. I think that’s not going to work.”

 

Land on demand

But the Black First Land First Movement says that’s beside the point. The relatively new political movement, which launched in 2015 and calls itself a revolutionary, pan-Africanist socialist movement, says much of South Africa’s land was stolen from its original black owners by white settlers during South Africa’s colonial and apartheid periods. Today, the majority of South African agricultural land is owned by white farmers.

 

The group’s deputy president, Zanele Lwana, said all of this land should be returned and no one has the right to ask what the new owners plan to do with it.

 

“We believe South Africa is a black country,” she told VOA. “And we believe that white people in this country are sitting on stolen property. And the call to call for land expropriation without compensation speaks to historical redress.”

Lwana also told VOA that the group considers land occupation a legitimate tactic if the government does not go through with its expropriation plans.

 

Playing politics?

Analysts and critics say the government is exploiting this sensitive issue to win votes for next year’s elections, a claim Lwana and her movement echo, alleging that Ramaphosa has no actual intention of enacting meaningful land reform.

 

Ramaphosa’s ruling African National Congress has been steadily losing ground at the polls, and analysts say an emotive issue like land redistribution could attract voters, especially lower-income black voters who comprise much of the ANC’s base.

 

“It is a genuine issue, but like all genuine issues, it has been handled with the view of securing short term political gains, unfortunately,” independent political analyst Ralph Mathekga told VOA.

 

Mathekga, who owns a 10-acre farm in the rural Limpopo province, said he understands the emotional aspect of the debate. He got permission from local leadership to farm there about three years ago.

 

“I grew up farming,” he told VOA. “That’s what I did. I used to put together the mules, that’s what I did before I went off to university.”

He said he has issues with the debate’s focus on land reform, though, instead of on agricultural reform. If this is going to work, he said, the government needs to assist new farmers in getting into the economy. If not, this story will not end well, he contends.

 

“I’ve never made a cent out of [the farm],” he said, adding that a recent drought and difficulty in finding eager, competent young workers have made it hard to profit. “It’s a highly risky business, and I think people need to think very carefully about it.”
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The U.S. federal deficit will reach $1 trillion by the end of the fiscal year, the nonpartisan Congressional Budget Office said Tuesday.

The CBO said in previous estimates that it did not expect to hit the milestone until 2020.

Spending rose by $222 billion, or 32 percent, in the first 11 months of fiscal 2018, compared with the same period last year.

In the current period, the deficit has reached $895 billion.

The CBO credited the surge to the new Republican tax law and increased government spending. Expenditures rose by 7 percent, while tax revenue rose by only 1 percent. 
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Amid a worsening tariff battle, China is putting off accepting license applications from American companies in financial services and other industries until Washington makes progress toward a settlement, an official of a business group said Tuesday.

The disclosure is the first public confirmation of U.S. companies’ fears that their operations in China or access to its markets might be disrupted by the battle over Beijing’s technology policy. China is running out of American imports for penalties in response to U.S. President Donald Trump’s tariff hikes, which has prompted worries that Chinese regulators might target operations of U.S. companies.

The license delay applies to industries Beijing has promised to open to foreign competitors, according to Jacob Parker, vice president for China operations of the U.S.-China Business Council. The group represents some 200 American companies that do business with China.

In meetings over the past three weeks, Cabinet-level officials told USCBC representatives they are putting off accepting applications “until the trajectory of the U.S.-China relationship improves and stabilizes,” Parker said.

Chinese authorities have promised to increase foreign access to areas including banking, securities, insurance and asset management.

“There seem to be domestic political pressures that are working against the perception of U.S. companies receiving benefits” during the dispute, Parker said.

As for what improvement might entail, Parker said Chinese officials want an end to Trump’s tariff hikes and a negotiated settlement. He declined to identify the officials but, in a sign Beijing wants foreign companies to help lobby Washington, said the meetings represented “unprecedented access” for his group.

Beijing matched Trump’s earlier tariff increase on $50 billion of imports but is running out of American goods for retaliation due to their lopsided trade balance. China bought American goods worth about $1 for every $3 of goods it exported to the United States.

Trump is poised to decide whether to raise duties on $200 billion of Chinese goods. Beijing has issued a $60 billion list of goods for retaliation.

A foreign ministry spokesman, Geng Shuang, said Monday that China will “definitely take countermeasures” if the tariff hike goes ahead.

Economists have warned Beijing might target service industries such as engineering or logistics, in which the United States runs a trade surplus with China.

Chinese commentators have suggested Beijing might use its multitrillion-dollar holdings of U.S. government debt as a weapon, though that would impose costs on China. State-controlled media have encouraged boycotts of Japanese and South Korean products in past disputes with those governments.

The government said in June it would impose unspecified “comprehensive measures” if necessary. That left U.S. companies on edge about whether Beijing will use its heavily regulated economy to disrupt their operations by withholding licenses or launching tax, anti-monopoly or other investigations.

Chinese leaders reject Trump’s demand to roll back official industry plans such as “Made in China 2025,” which calls for state-led creation of global champions in robotics, artificial intelligence and other technologies.

Washington, Europe and other trading partners say those plans violate Beijing’s market-opening commitments. But Communist leaders see them as a path to prosperity and global influence.

Chinese negotiators agreed in May to narrow their multibillion-dollar trade surplus with the United States by purchasing more American soybeans and other products. Beijing scrapped that deal after Trump’s first tariff increase went ahead July 6.

In addition to rolling back industry plans, the Trump administration wants Beijing to reduce the privileges of state-owned companies and eliminate requirements for foreign companies to hand over technology to Chinese partners.

In their meetings with the USCBC, Chinese officials expressed willingness to buy more American exports but “showed no appetite at all” to talk about industry reform, technology policy or other U.S. priorities, Parker said.

“I don’t consider that to be very positive for any kind of negotiated outcome in the short term or medium term,” he said.

Chinese regulators have shown their willingness to attack foreign companies in disputes with other governments.

Last year, Beijing destroyed South Korean retailer Lotte’s business in China after it sold a golf course in South Korea to the country’s government for construction of a missile defense system opposed by Chinese leaders.

Beijing closed most of Lotte’s 99 supermarkets and other outlets in China. Seoul and Beijing later mended relations, but Lotte gave up and sold its China operations.
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The Trump administration moved closer Tuesday to rolling back Obama-era rules reducing oil and gas industry leaks of methane gas, one of the most potent agents of climate change.

 

The Environmental Protection Agency formally released its proposed substitute for a 2016 Obama administration rule that aimed to step up detection and elimination of methane leaks at well sites and other oil and gas facilities. The agency’s move is part of a broad Trump administration effort to undo President Barack Obama’s legacy programs to fight climate change by cutting emissions from oil, gas and coal.

 

The EPA’s proposal Tuesday conceded that relaxing the Obama-era rule for methane leaks at oil and gas sites would put an additional 380,000 tons (350,000 metric tons) of methane into the atmosphere from 2019 to 2025. The amount is roughly equivalent to more than 30 million tons (27 million metric tons) of carbon dioxide, another fossil-fuel emission that receives far more attention in efforts to slow climate change.

 

The EPA noted that overall increased pollution as a result of its proposal “may also degrade air quality and adversely affect health and welfare.” Relaxing federal oversight will save $75 million in regulatory costs annually, the agency said.

 

Kathleen Sgamma, president of the Western Energy Alliance, a Colorado-based group that represents more than 300 companies, said the proposed changes make the EPA rule more efficient and workable. The previous rule was overly burdensome and “full of red tape. This rule cleans that up, makes it more practical” for industry to comply, Sgamma said in an interview.

 

Oil and gas drillers have “a four-decade long trend to reduce emissions,” and the new EPA rules recognize that reality, Sgamma said, adding that she hopes an Interior rule to be finalized in coming days will show a similar practical streak. The pending rule by the Bureau of Land Management applies to fracking sites on public lands.

 

Environmentalists contend energy companies already have demonstrated they can comply with tougher monitoring and that only poorly operated companies were having trouble with the new requirements.

 

“Once again, the Trump administration is putting the interests of the worst-operated oil and gas companies ahead of the health and welfare of everyday Americans,” said Matt Watson, an associate vice president at the Environmental Defense Fund.

 

Democratic Gov. Jerry Brown of California on Tuesday told a meeting in San Francisco ahead of a climate conference there that President Donald Trump’s proposal to ease monitoring of methane releases is “insane” and “borders on criminality.”

 

“It perhaps is the most obvious and dangerous and irresponsible action by Mr. Trump — and that’s saying quite a lot,” Brown said.

 

The EPA under Obama completed the existing rule in May 2016, and it took effect that August. Industry groups pushed the EPA to reconsider, and the Trump administration put parts of it on hold in May 2017.

 

The rule was reinstated by the U.S. Court of Appeals in Washington, D.C., last year after environmental groups sued, and it remains in effect, according to the EPA.

 

Tuesday’s action opens a 60-day period for public comment ahead of any final decision by the Trump administration.

 

In North Dakota, the nation’s biggest oil-producing state after Texas, drillers scaled back production for a time this summer to keep so-called flaring — burning off of methane and other gases pumped up as waste byproducts with the oil — within state limits.

 

North Dakota Air Quality Director Terry O’Clair said the state typically adopts “nothing more stringent than the federal rules.” State officials would reconsider their recently toughened rules on oilfield gas leaks if federal officials loosen theirs, he said.
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Japan will once again try to get the international ban on whale hunting overturned at the global conference of the International Whaling Commission (IWC), which opened in Brazil on Monday.

The proposal presented by Japan says, “Science is clear: there are certain species of whales whose population is healthy enough to be harvested sustainably.”

While the Japanese proposal is supported by other traditional whaling countries, such as Iceland and Norway, it faces fierce opposition from countries such as Australia and Brazil, and the European Union, as well as from numerous environmental groups.

Japan, which has pushed for an amendment to the ban for years, accuses the IWC of siding with anti-whaling nations rather than trying to reach a compromise between conservationists and whalers.

Whale meat has been a a traditional part of the Japanese diet for centuries.

After the IWC adopted a ban on commercial whaling in 1982, Japan, Norway and Iceland continued to hunt whales. Tokyo justified the practice as a part of scientific research, which was allowed by the moratorium.

But in 2014, the International Court of Justice ruled that Japan’s whaling practice had no scientific basis, but instead it was a way to keep the industry alive.

This year, Japan wants to establish a Sustainable Whaling Committee to oversee the hunting of healthy whale populations for commercial purposes.

But environmentalists say allowing even limited hunting of the mammoth mammals will only again push the species to the brink of extinction. Brazil introduced  proposal Monday that says hunting whales is “no longer a necessary economic activity.”

Australia has vowed to lead the charge against reinstatement of commercial whaling and it has the strong backing of New Zealand, the European Union and the United States.

Japan’s proposal will likely be put to a vote sometime before the conference ends on Sept. 14.
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U.S. Energy Secretary Rick Perry met with Saudi Energy Minister Khalid al-Falih on Monday in Washington, the U.S. Energy Department said, as the Trump administration encourages big oil-producing countries to keep output high ahead of Washington’s renewed sanctions on Iran’s crude exports.

Perry and Falih discussed the state of world oil markets, the potential for U.S.-Saudi civil nuclear cooperation and efforts to share technologies to develop “clean fossil fuels,” the department said in a statement.

The Saudi Embassy in Washington did not immediately respond to a request for comment.

Perry will also meet with Russian Energy Minister Alexander Novak, on Thursday in Moscow, a U.S. source and a diplomatic source said Sunday night.

High oil prices are a risk for President Donald Trump and his fellow Republicans in Nov. 6 congressional elections. Global oil prices have already risen sharply to more than $76 a barrel in recent weeks on concerns about sanctions on Iran’s oil exports that Washington will renew on Nov. 4. 

Trump withdrew the United States in May from the nuclear deal with Iran, and he is pushing consuming countries to cut their purchases of Iranian oil to zero.

It is unclear what the United States may offer big oil producers in return for higher oil production.

Saudi Arabia has been seeking a civilian nuclear agreement with the United States that could allow the kingdom to enrich uranium and reprocess plutonium.

Russia wants the United States to drop sanctions on Moscow. 

OPEC and non-OPEC officials will meet later this month to discuss proposals for sharing an oil output increase, after the groups decided in June to boost output moderately.
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Canadian Foreign Minister Chrystia Freeland will meet U.S. Trade Representative Robert Lighthizer in Washington on Tuesday for another round of talks to renew the NAFTA trade pact, an official said on Monday, as time runs short to seal a deal.

Freeland spokesman Adam Austen did not give details. After more than a year of negotiations, Canada and the United States are still trying to resolve differences over the North American Free Trade Agreement, which also includes Mexico.

U.S. officials say time is running out to agree on a text on which the current Congress can vote. Canadian officials say they are working on the assumption they have until the end of September.

Freeland spent three days in Washington last week and said on Friday as she prepared to leave that she and Lighthizer were making very good progress in some areas, although a deal remained out of reach.

U.S. President Donald Trump, who says he is prepared to tear up NAFTA, has struck a trade deal with Mexico and threatened to push ahead without Canada.

Uncertainly over the future of NAFTA, which underpins $1.2 trillion in trade, is weighing on markets as well as the Canadian and Mexican currencies.

Officials say the main sticking points are Canada’s dairy quota regime, Ottawa’s desire to keep a dispute-resolution mechanism, and Canadian media laws that favor domestically produced content.

U.S. Agriculture Secretary Sonny Perdue, speaking in an interview broadcast on Sunday, said Canada had to scrap a low-price milk proteins policy to reach a deal on NAFTA. U.S. farmers complain Canada is flooding export markets.

Austen, asked whether Freeland might return to Washington later in the week, said no decisions had been taken. She is due to attend a two-day meeting of legislators from the ruling Liberal Party in western Canada on Wednesday and Thursday.

Prime Minister Justin Trudeau said last Wednesday he did not see the need to attend the talks for the time being.
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