Mozambique Takes Legal Action Over $2 Billion Loans

Mozambique’s Attorney General has filed a legal complaint against officials and state-owned companies involved in securing $2 billion in loans that were not approved by parliament or disclosed publicly, her office said on Monday.

Investigations into the debt found that the deals violated Mozambique’s constitution, the AG’s office said in a statement.

The alleged infringements included failure to comply with the procedures and limits established by law in the issuance of guarantees by the state, it said.

“Thus, on January 26, the [office] submitted a complaint to the Administrative Court on the financial accountability of public managers and state-owned companies involved in the management of financing, supply and service contracts,” the statement read.

It did not name any of the managers or the companies.

The Administrative Court is responsible for ruling on the legality of public expenditure.

An independent audit of the debt showed in June last year that questions remained on how the $2 billion was used and roughly a quarter of the money remained unaccounted for.

The Attorney General also recommended among other issues a review of legislation related to state businesses and scrutiny and monitoring of projects benefiting from state guarantees.

Experts: Amazon’s ‘HQ2’ Will Bring Strain as Well as Gain to Winning City

As the 20 shortlisted cities vying to host Amazon.com’s second North American headquarters hone their bids to attract thousands of high-paid jobs, they should also plan for rising housing costs and strains on infrastructure, experts said.

The winning city should ensure community benefits, such as support for affordable housing, new schools and beefed-up public transport are part of any deal, said academics and city planners.

“If the price to pay Amazon exceeds the resources Amazon generates that can be used to manage the stress, the winning city may also be the loser,” said Arthur Nelson, an urban planning professor at the University of Arizona.

Amazon said in September it will build a second headquarters, dubbed Amazon HQ2, that would be a full equal to its existing downtown Seattle campus.

The e-commerce giant estimates the new corporate location would generate $5 billion in real estate investment and bring in 50,000 well-paid jobs.

The list of 20 final candidates, announced on January 18, leans heavily to the eastern half of North America, and includes the cities of Atlanta, Boston, and Washington, D.C.

According to the Urban Institute, a policy think tank in Washington, D.C., there is a housing affordability crisis in the United States affecting the poorest renters, with the problem most acute in metropolitan areas.

That situation will be exacerbated in whichever city Amazon chooses to land, experts said.

“There is no city on the list that can avoid upward rents and house prices, probably pretty sharp ones,” Stockton Williams, executive vice president at the Urban Land Institute, a global network of real estate and land use experts, told the Thomson Reuters Foundation.

While the Amazon HQ2 shortlist does not include the nation’s most expensive housing market — metro San Francisco — it does include many other expensive cities like Boston, Los Angeles, New York City, Toronto, and Washington, D.C. Williams believes some are better equipped than others to

handle a potential Amazon HQ2.

Austin, Boston, Denver, Nashville, New York City, and Washington, D.C. have all shown “a sustained effort, commitment, and growing capacity” to increasing their supply of affordable housing, he said. “It’s a good start, if not enough,” he said.

One of the bidding cities, the U.S. capital Washington D.C. said it would work to ensure the rewards of hosting Amazon’s second headquarters countered any negative impacts.

“Our job is to ensure that the benefits of Amazon HQ2 significantly outweigh the costs,” said a spokeswoman for the city’s Department of Economic Development.

“If we do our job well, we will be able to leverage the benefits, such as additional revenues, to address the needs of residents, such as affordable housing.”

Bidding war

The search for a second North American headquarters after Seattle set off a frenzied competition, with some 238 initial applications, offering incentives including big tax breaks.

The largest has been on behalf of Newark, where New Jersey offered $7 billion in financial incentives for Amazon to choose the city for the new campus, which itself only promises $5 billion in direct investment.

Efforts to lure Amazon with taxpayer funds are a “big mistake,” said urbanist Richard Florida.

“An auction that pits more than 200 cities against each other in a bidding war makes no sense for anyone,” said Florida, a scholar at the Penn Institute for Urban Research.

“The company should issue an ‘Amazon Pledge’ that it will not accept any tax or financial incentives, but invest alongside cities to create better jobs, build more affordable housing, and develop better schools, transit, and other badly needed public goods, along with paying its fair share of taxes,” Florida said.

An Amazon spokesperson said the company had no comment on the proposed Amazon Pledge.

In May 2017, Amazon announced a plan to host homeless families on six floors of a new office building in Seattle in partnership with a local non-profit.

According to company surveys, about one-fifth of Amazon’s Seattle employees walk to work, while another 35 percent cycle or use public transportation.

Once the company settles on the winner, the city has the opportunity to extract concessions, said Williams of the Urban Land Institute.

“Cities do have leverage to ensure that big corporate redevelopment projects generate community benefits, in particular benefits that can offset some of the negative impact that comes along with many of the positive impacts of a company like Amazon locating in a city,” he said.

Amazon could work with a housing developer, contribute to local affordable housing funds, or support grassroots groups providing affordable housing themselves.

“I don’t see a city on this list that wouldn’t on net be better off as a result of Amazon arriving,” Williams said. Others were skeptical of Amazon’s willingness to make concessions. “It is as hard-nosed a company as America has seen,” said Nelson.

Secret Service Warns Financial Firms of ATM Cyberattacks

The Secret Service is warning financial institutions about a type of cyberattack known as jackpotting.

Secret Service officials say the crime involves installing malicious software or hardware at ATMs that force the machines to release large quantities of cash on demand.

They say criminals have been able to find vulnerabilities in financial institutions that operate ATMs, typically stand-alone machines located in pharmacies, big-box retailers and drive-thrus.

The Secret Service says the criminals range from individual actors to international organized crime syndicates.

The Secret Service says authorities have recently obtained credible information about planned jackpotting attacks in the U.S. and have alerted law enforcement and financial institutions.

Global Public Health Threatened by Growing Antibiotic Resistance

New data from 22 high- and low-income countries show antibiotic resistance to a number of serious bacterial infections is growing at an alarming rate. The World Health Organization surveyed one-half million people with suspected bacterial infections between March 2016 and July 2017.

The survey, the first of its kind, is vital in improving and understanding the extent of antimicrobial resistance in the world. World Health Organization Spokesman Christian Lindmeier, tells VOA the findings raise many red flags.

“The data that these countries provided show us that in some of the most common bacteria, the most commonly reported resistant bacteria, we find the resistance of sometimes up to 65 even up to 82 percent, depending on the bacteria. And… these are really alarming data,” he said.

The most commonly reported resistant bacteria include e-coli bacterial infection, staph infections, pneumonia and salmonella. The World Health Organization is encouraging all countries to set up good surveillance systems for detecting drug resistance. This, it says, will provide needed information to tackle what it calls one of the biggest threats to global public health.

If drug resistance is not successfully tackled, Lindmeier warns the world could return to the dangerous days before penicillin was invented.

“A simple infection, a cut, minor surgery suddenly can turn into a potentially most dangerous, life-threatening situation because infections would then prove drug resistant,” he said. “A cancer treatment for example would become a huge challenge on top of the cancer because the already low immune system could not be boosted any more with antibiotics. Any infection would pose an additional risk.”

Lindmeier says some countries are taking these warnings to heart. For example, he notes Kenya is enhancing its national antimicrobial resistance system, Tunisia is now collecting national drug-resistant data, and Korea is strengthening its surveillance system.

 

 

Map of GPS Fitness Activity Sparks Military Security Concerns

The U.S. military says it is evaluating its policies after a global map of fitness activity drew attention to possible security concerns regarding locations of overseas bases and soldier movements.

Strava published its so-called heat map of user activity in November showing the routes millions of users walked, ran and biked, with the most frequent routes showing up in brighter colors. The company says it excluded activities that users marked as private or ones that took place in areas people did not want to make public.

The activities were tracked using GPS-enabled devices from manufacturers like Fitbit, Garmin and Polar, and even with the exclusions, Strava said its map included 1 billion activities between 2015 and September 2017.

The Washington Post reported on the heat map and its implications, highlighting a Twitter post by Australian student Nathan Ruser who shared the link to the Strava site Saturday.

“It looks very pretty, but not amazing for Op-Sec [operational security]. US Bases are clearly identifiable and mappable,” Ruser wrote.

The map shows the most activity in places like the United States, Western Europe, Japan and Brazil. In Iraq, Syria and Afghanistan, activities show up bright against otherwise dark terrain, including in multiple places where the U.S. military is known to have bases or be active.

The devices that transmit the data can be used in several ways, including for example a short run or keeping track of the steps a person takes throughout the day. The result can be lines on the heat map showing loops around the perimeter of a military installation where people exercise or showing where they move from place to place throughout the facility, or elsewhere.

“DoD takes matter like these very seriously and is reviewing the situation to determine if any additional training or guidance is required, and if any additional policy must be developed to ensure the continued safety of DoD personnel at home and abroad,” Department of Defense spokeswoman Maj. Audricia Harris said.

Published Global Fitness Map Sparks Military Security Concerns

The U.S. military says it is evaluating its policies after a global map of fitness activity drew attention to possible security concerns regarding locations of overseas bases and soldier movements.

Strava published its so-called heat map of user activity in November showing the routes millions of users walked, ran and biked, with the most frequent routes showing up in brighter colors. The company says it excluded activities that users marked as private or ones that took place in areas people did not want to make public.

The activities were tracked using GPS-enabled devices from manufacturers like Fitbit, Garmin and Polar. Even with the exclusions, Strava said its map included 1 billion activities between 2015 and September 2017.

The Washington Post reported on the heat map and its implications, highlighting a Twitter post by Australian student Nathan Ruser who shared the link to the Strava site Saturday.

“It looks very pretty, but not amazing for Op-Sec [operational security]. US Bases are clearly identifiable and mappable,” Ruser wrote.

The map shows the most activity in places like the United States, Western Europe, Japan and Brazil. In Iraq, Syria and Afghanistan, activities show up bright against otherwise dark terrain, including in multiple places where the U.S. military is known to have bases or be active.

The wearable devices that transmit the data can be used in several ways, including for example a short run or keeping track of the steps a person takes throughout the day. The result can be lines on the heat map showing loops around the perimeter of a military installation where people exercise or showing where they move from place to place throughout the facility, or elsewhere.

“DoD takes matter like these very seriously and is reviewing the situation to determine if any additional training or guidance is required, and if any additional policy must be developed to ensure the continued safety of DoD personnel at home and abroad,” Department of Defense spokeswoman Maj. Audricia Harris said.

New York to Probe Firms that Sells Fake Social Media Followers

New York State Attorney General Eric Schneiderman has launched an investigation of a firm that allegedly sold millions of fake followers to social media users.

The company, Devumi, sold more than 200 million fake followers, or bots, to celebrities, sports stars, and politicians, The New York Times reported.

“Impersonation and deception are illegal under New York law,” Schneiderman tweeted. “We are opening an investigation into Devumi and its apparent sale of bots using stolen identities.”

The Times reported that at least 55,000 of the bot accounts names, pictures, hometowns and other details taken from people on Twitter. The information was stolen from people in every U.S. state as well as dozens of countries, The Times said.

“The growing prevalence of bots means that real voices are too often drowned out in public conversation,” Schneiderman said. “Those who can pay the most for followers can buy their way to apparent influence.”

On social media, high follower numbers means greater influence and visibility, which can impact public opinion and offer lucrative financial deals for the account holders.

On its website, Devumi offers customers the chance to buy up to 500,000 followers for social media sites including Twitter, YouTube, LinkedIn, Pinterest and Vimeo, with prices starting at as little as $12.

IKEA Furniture Magnate Ingvar Kamprad Dies at 91

Ingvar Kamprad, who founded Sweden’s IKEA furniture brand and transformed it into a worldwide business empire, has died at the age of 91.

Kamprad died Saturday of pneumonia in the southern Swedish region of Smaland where he grew up on a farm, and with some modest financial help from his father, starting selling pens, picture frames, typewriters and other goods. It was the start of what became IKEA, now with 403 stores across the globe, 190,000 employees and $47 billion in annual sales.

His brand became synonymous with the simplicity of Scandinavian design, modest pricing, flat-pack boxing and do-it-yourself assembly for consumers. It turned Kamprad into an entrepreneur with a reported net worth of $46 billion. The company name was an acronym of his initials, the name of his farm, Elmtaryd, and his town of origin, Agunnaryd.

Swedish Prime Minister Stefan Lofven said Kamprad “was a unique entrepreneur who had a big impact on Swedish business and who made home design a possibility for the many, not just the few.” King Carl XVI Gustaf called Kamprad a “true entrepreneur” who “brought Sweden out to the world.”

Kamprad’s life was not without controversy, however.

He faced sharp criticism for his ties to the Nazi youth movement in the 1940s. While Sweden was neutral during the war, its Nazi party remained active after the war. Kamprad said he stopped attending its meetings in 1948, later attributing his involvement to the “folly of youth,” and calling it “the greatest mistake of my life.”

While he eventually returned to Sweden, Kamprad fled his homeland’s high-tax structure for Denmark in 1973 and later moved to Switzerland in search of even lower taxes.

The European Commission last year launched an investigation into ways IKEA allegedly used a Dutch subsidiary to avoid taxes, with the Green Party contending the company avoided $1.2 billion in European Union taxes between 2009 and 2014. The Consortium of Investigative Journalists identified IKEA in 2014 as one of the giant multinationals that moved money to tax havens to avoid taxes.

Kamprad was known for his frugality, buying his clothes at thrift shops, driving an aging Volvo and bringing his lunch to work.

Mumbai’s Dharavi Breaks Stereotypes of Slum for Foreign Tourists

Why has Mumbai’s largest slum, which packs some one million people in about two square kilometers, emerged as an unlikely stop for foreign tourists? The draw is not images of squalor and poverty in the heart of India’s largest city, but a place where thriving entrepreneurship and stories of hope and success break many stereotypes of a slum. Anjana Pasricha reports.

Trump Lauds US Economic Performance

U.S. President Donald Trump touted the continued growth of the U.S. economy on Sunday, saying it is “better than it has been in many decades.”

“Businesses are coming back to America like never before,” Trump said in a Twitter remark, a likely theme of his State of the Union address on Tuesday. “Unemployment is nearing record lows. We are on the right track!”

He said, “Chrysler, as an example, is leaving Mexico and coming back to the USA,” an exaggeration of Chrysler’s expansion plans. Fiat Chrysler, the world’s eighth biggest auto manufacturer, says it is investing $1 billion to manufacture its profitable Ram pickup trucks in the midwestern state of Michigan, shifting the production from Mexico, but at the same time is not cutting any of its vehicle manufacturing jobs in Mexico.

The U.S. jobless rate has held steady at 4.1 percent for the last three months, the lowest figure in 17 years. The U.S. economy, the world’s largest, advanced at a 2.3 percent pace last year, Trump’s first year in office, up from 1.5 percent in 2016.

The U.S. economy, however, slowed in the last three months of 2017, expanding at a 2.6 percent annual rate, down from the 3.2 percent figure in the July-to-September period.

Attack on Jay-Z

In praising the U.S. economic performance, Trump also attacked Jay-Z, after the rap musician had assailed Trump in a Saturday news talk show over the president’s recent reported vulgar descriptions of people from Haiti and Africa as he seeks to block their immigration to the United States.

“Somebody please inform Jay-Z that because of my policies, Black Unemployment has just been reported to be at the LOWEST RATE EVER RECORDED!” Trump said. The black unemployment rate in the U.S. has fallen to 6.8 percent, which is still higher than the 3.7 percent figure for whites.

Jay-Z told CNN interviewer Van Jones that economic advances for blacks do not outweigh Trump’s attacks on predominantly black countries.

“Everyone feels anger, but after the anger, it’s really hurtful because he’s looking down on a whole population of people. And he’s so misinformed because these places have beautiful people,” Jay-Z said, adding, “It’s not about money at the end of the day. Money doesn’t equate to happiness. It doesn’t. That’s missing the whole point.

“You treat people like human beings,” he said.

 

 

 

 

Early Diagnosis and Treatment Can Prevent Disability from Leprosy

To mark World Leprosy Day, the World Health Organization is calling for the eradication of this ancient disfiguring disease by combating the stigma and discrimination that discourages people from seeking the help they need.

Leprosy, a hideously disfiguring disease that has blighted the lives of countless millions since Biblical days, is curable. And yet, the World Health Organization reports more than 200,000 people, most in Southeast Asia, are affected with the disease and new cases continue to arise every year.

Leprosy is a chronic bacterial disease with a slow incubation period of about five years. In some cases, symptoms may occur within one year, but can take as long as 20 years to appear.

Leprosy was eliminated globally as a public health problem in 2000, but the disease persists in individuals and communities. WHO spokesman, Tarik Jasarevic, tells VOA this is unacceptable, as an effective treatment exists that can fully cure people of leprosy.

“Since ’95, WHO has provided this multi-drug therapy free of cost to all leprosy patients in the world,” he said. “In 2016, WHO launched global leprosy strategy, 2016-2020, accelerating toward a leprosy-free world. This is basically to revamp the efforts for leprosy control. The strategy focuses on avoiding disabilities, especially among children.”

This year’s World Leprosy Day focuses on preventing disabilities in children. WHO reports children account for nearly nine percent of all new cases of leprosy, including almost seven percent of those with visible deformities.

The U.N. health agency notes early diagnosis and early treatment can prevent disability. It says disabilities do not occur overnight, but happen after a prolonged period of undiagnosed and untreated disease.

Unfortunately, it notes many people do not seek help until it is too late and deformities already have appeared. This is because of the stigma and discrimination associated with leprosy.

WHO is calling for laws discriminating against people with leprosy to be abolished and replaced with policies promoting inclusion of such people within society.

Scientists Create a New Type of Hologram

Projecting three-dimensional (3D) images in thin air, called holography, moved from science fiction to reality a long time ago. But this type of graphic display is not in wide use because the required equipment is still expensive. Scientists at the Brigham Young University have discovered a cheaper method of holography, using particles floating in the air. VOA’s George Putic reports.

AP Fact Check: Data Melt Trump’s Cooling, Ice Claims

President Donald Trump’s description of the climate on planet Earth doesn’t quite match what data show and scientists say.

In an interview with Piers Morgan airing Sunday on Britain’s ITV News, the president said the world was cooling and warming at the same time and that claims of melting ice caps haven’t come true.

TRUMP: “There is a cooling, and there’s a heating. I mean, look, it used to not be climate change, it used to be global warming. That wasn’t working too well because it was getting too cold all over the place.”

Ten different climate scientists contacted by The Associated Press said the president was not accurate about climate change. Rutgers University climate scientist Jennifer Francis responded in an email: “Clearly President Trump is relying on alternative facts to inform his views on climate change. Ice on the ocean and on land are both disappearing rapidly, and we know why: increasing greenhouse gases from burning fossil fuels that trap more heat and melt the ice.”

THE FACTS: The world hasn’t had a cooler-than-average year since 1976 and hasn’t had a cooler-than-normal month since the end of 1985, according to more than 135 years of temperature records kept by NASA and the National Oceanic and Atmospheric Administration.

The last four years have been the four hottest years on record globally, with 2010 the fifth hottest year, according to NOAA. Every year in the 21st century has been at least three quarters of a degree (0.4 degrees Celsius) warmer than the 20th century average and in the top 25 hottest years on record, NOAA records show.

And while a good chunk of the United States had a frigid snap recently, most of the rest of the world was far warmer than normal, according to temperature records.

Zeke Hausfather of the Berkeley Earth temperature monitoring program, initially funded by nonscientists who doubt that the world is warming, said in an email: “The world has been warming steadily over the past 50 years, with 17 of the past 18 years being the warmest since records began in the 1850s. It is not accurate to say that the climate has been ‘cooling as well as warming.’”

TRUMP: “The ice caps were going to melt, they were going to be gone by now, but now they’re setting records. They’re at a record level.”

THE FACTS: It is a bit more nuanced, but not quite right.

While a small number of experts a decade ago had predicted that Arctic would be free of summer sea ice by now, most mainstream scientists and the United Nations’ Intergovernmental Panel on Climate Change did not, instead they said Arctic sea ice would shrink, which it has, said Pennsylvania State University ice scientist Richard Alley. Most scientists, including the director of the National Snow and Ice Data Center, are predicting that the Arctic will be free of summer sea ice sometime around the 2040s.

The Arctic set a record for the lowest amount of sea ice in the winter, when sea ice usually grows to its maximum levels, in March 2017. In 2012, the Arctic set a record for lowest sea ice levels. 

Sea ice recovered slightly from that record and in 2017 in September, the annual low was only the eighth lowest on record, according to the National Snow and Ice Data Center. But the 10 lowest years of sea ice have been all in the last 11 years. Arctic sea ice is declining at a rate of 13.2 percent per decade, according to NASA.

Princeton University climate scientist Michael Oppenheimer said the Antarctic sea ice pack, less directly influenced by global climate change, varies from year to year. Antarctica hit a record low for sea ice in March 2017, the same month the Arctic hit a record winter low. Antarctic sea ice also reached a record high in 2014.

“Both of the large ice sheets of Greenland and Antarctica are losing hundreds of billions of tons of ice per year. Sea ice continues to decline significantly in the Arctic decade by decade, and the thickness of Arctic ice is now less than 50 percent of what it was 40 years ago,” National Snow and Ice Data Center scientist Ted Scambos said in an email.

Coincheck to Return $425M in Virtual Money Lost to Hackers

Tokyo-based cryptocurrency exchange Coincheck Inc said Sunday it would return about 46.3 billion yen ($425 million) of the virtual money it lost to hackers two days ago in one of the biggest-ever thefts of digital money.

That amounts to nearly 90 percent of the 58 billion yen worth of NEM coins the company lost in an attack Friday that forced it to suspend withdrawals of all cryptocurrencies except bitcoin.

Coincheck said in a statement it would repay the roughly 260,000 owners of NEM coins in Japanese yen, though it was still working on timing and method.

Theft and security

The theft underscores security and regulatory concerns about bitcoin and other virtual currencies even as a global boom in them shows little signs of fizzling.

Two sources with direct knowledge of the matter said Japan’s Financial Services Agency (FSA) sent a notice to the country’s roughly 30 firms that operate virtual currency exchanges to warn of further possible cyber-attacks, urging them to step up security.

The financial watchdog is also considering administrative punishment for Coincheck under the financial settlements law, one of the sources said.

Japan started to require cryptocurrency exchange operators to register with the government in April 2017. Pre-existing operators such as Coincheck have been allowed to continue offering services while awaiting approval. Coincheck’s application, submitted in September, is still pending.

Coincheck told a late-Friday news conference that its NEM coins were stored in a “hot wallet” instead of the more secure “cold wallet,” outside the internet. Asked why, company President Koichiro Wada cited technical difficulties and a shortage of staff capable of dealing with them.

Shades of Mt. Gox

In 2014, Tokyo-based Mt. Gox, which once handled 80 percent of the world’s bitcoin trades, filed for bankruptcy after losing around half a billion dollars worth of bitcoins. More recently, South Korean cryptocurrency exchange Youbit last month shut down and filed for bankruptcy after being hacked twice last year.

World leaders meeting in Davos last week issued fresh warnings about the dangers of cryptocurrencies, with U.S. Treasury Secretary Steven Mnuchin relating Washington’s concern about the money being used for illicit activity.

EPA Puts Brakes on Approval Process for Gold, Copper Mine

In a surprise move, the U.S. Environmental Protection Agency reversed itself Friday and stopped the approval process for the proposed Pebble Mine copper and gold mine project in southwest Alaska’s Bristol Bay region.

“It is my judgment at this time that any mining projects in the region likely pose a risk to the abundant natural resources that exist there,” EPA Administrator Scott Pruitt said in a statement.

President Donald Trump has championed increased domestic mining, and the EPA’s decision to halt the Pebble Mine’s approval process comes as a surprise.

“Until we know the full extent of that risk, those natural resources and world-class fisheries deserve the utmost protection,” Pruitt said.

The Obama administration blocked the proposed mine in 2014 over environmental concerns. Last year, Pruitt reversed that decision, allowing the Canadian company behind the mine project to apply for a permit from the U.S. Army Corps of Engineers.

The Pebble Limited Partnership, comprising Canadian miners Northern Dynasty Minerals Ltd and First Quantum Minerals Ltd, is planning to mine 1.2 billion tons of material, including 287 million pounds of copper.

Environmentalists, commercial and sport fishermen, many Alaska Native tribal organizations and even some Republican politicians have all criticized the project, which would be built on land near Lake Clark National Park.

Alaska Governor Bill Walker, an independent, applauded the decision and thanked Pruitt “for listening to my input and that of thousands of Alaskans” who oppose the mine.

Pruitt indicated the mine could ultimately be approved.

“This decision neither deters nor derails the application process of Pebble Limited Partnership’s proposed project,” he said.

“The project proponents continue to enjoy the protection of due process and the right to proceed. However, their permit application must clear a high bar, because EPA believes the risk to Bristol Bay may be unacceptable,” he said.

Pacific Trade Deal Will Move Forward Without the US

President Donald Trump’s “America First” policy on trade aims to reverse decades of lopsided exchange by withdrawing from international trade deals, renegotiating others and raising tariffs on foreign-made goods destined for the U.S. But, in a connected global economy, analysts warn the U.S. could find itself increasingly isolated as other countries rush forward to embrace new trade deals. Mil Arcega reports.

Alaska Delegation Wants Some Waters Out of Drilling Plan

Alaska’s all-Republican congressional delegation three weeks ago praised Interior Secretary Ryan Zinke after he announced nearly all federal waters off the state’s coast could be offered for petroleum lease sales.

But after hearing from critics who do not want drilling in their home waters, U.S. Sens. Lisa Murkowski and Dan Sullivan and Rep. Don Young are backtracking.

In a letter Friday to Zinke, the delegation requested that most Alaska waters from the state’s Panhandle to the Bering Strait be removed from the proposed five-year drilling plan.

Instead, they urged lease sales in only three areas: Cook Inlet, where petroleum platforms have extracted oil and natural gas for decades, and the Arctic waters of the Chukchi and Beaufort seas.

“We believe the strongest near-term offshore program in Alaska is one that focuses on the Chukchi, Beaufort and Cook Inlet,” they wrote. “Such a program will maximize agency resources and reflect the areas with the broadest support for development among Alaskans.”

Zinke announced the proposed lease sale plan Jan. 4. He said revisions could be made after public comment.

Immediate opposition

The proposal excluded only one area of Alaska: the North Aleutian Basin, home to Bristol Bay and the world’s largest run of sockeye salmon.

The proposal drew immediate opposition from governors in East and West Coast states. After Florida Gov. Rick Scott, a Republican, met with Zinke, the secretary announced that drilling would be “off the table” for waters in the eastern Gulf of Mexico and the Atlantic Ocean off Florida.

Subsistence resources

In Alaska, proposed lease sales in the Bering Sea drew strong condemnation from the Bering Sea Elders Group, an association of Alaska Native elders appointed from 39 tribes, and Kawerak Inc., a regional nonprofit organization, which said oil and gas activities pose a serious threat to marine life.

“These basins are where tribes from our region have harvested subsistence resources for millennia and where local people from our region fish and crab commercially,” Kawerak said in an announcement.

Drilling in the Beaufort and Chukchi seas, home to polar bears, walrus and ice seals that support the subsistence economies of coastal villages, is strongly opposed by environmental groups. They say the harsh climate makes spills inevitable and that cleanup of a major spill would be impossible in waters choked by or covered in sea ice.

Oil estimates

However, federal regulators say the Beaufort Sea, off Alaska’s north coast, holds an estimated 8.9 billion barrels of oil and the Chukchi, off Alaska’s northwest coast, holds an estimated 15.4 billion barrels.

Royal Dutch Shell spent $2.1 billion on Chukchi Sea leases in 2008, invested another $5 billion overall in U.S. Arctic waters, and pulled out after drilling a dry hole in 2015.

Murkowski, Sullivan and Young contend drilling in Arctic waters can be done safely. They said they strongly support the inclusion of the Beaufort and Chukchi seas for lease sales between 2019 and 2024, while at the same time urging “meaningful consultation” with communities.

US Trade Body Backs Canadian Plane Maker Bombardier Against Boeing

A U.S. trade commission on Friday handed an unexpected victory to Bombardier Inc. against Boeing Co., in a ruling that allows the Canadian company to sell its newest jets to U.S. airlines without heavy duties, sending Bombardier’s shares up 15 percent.

The U.S. International Trade Commission’s unanimous decision was the latest twist in U.S.-Canadian trade relations that have been complicated by disputes over tariffs on Canadian lumber and U.S. milk and President Donald Trump’s desire to renegotiate or even abandon the North American Free Trade Agreement (NAFTA).

Trump, who did not weigh in on the dispute personally, took his “America First” message to the world’s elite on Friday, telling a summit that the United States would “no longer turn a blind eye” to what he described as unfair trade practices.

The ITC commissioners voted 4-0 that Bombardier’s prices did not harm Boeing and discarded a U.S. Commerce Department recommendation to slap a near 300 percent duty on sales of the company’s 110- to 130-seat CSeries jets for five years. It did not give a reason immediately.

U.S. Commerce Secretary Wilbur Ross said in a statement that the commission’s finding “shows how robust our system of checks

and balances is.”

Boeing’s shares closed flat.

“It’s reassuring to see that facts and evidence matter,” said Chad Bown, a senior fellow at the Peterson Institute for International Economics in Washington. “This part of the trade policy process works unimpeded despite President Trump’s protectionist rhetoric.”

Removing ‘uncertainty’

The decision will also help Bombardier sell the CSeries in the United States by removing “a huge amount of uncertainty,” at a time when its Brazilian rival Embraer is bringing its new E190-E2 jet to market, a source familiar with the

Canadian plane and train maker’s thinking said.

The ITC had been expected to side with Chicago-based Boeing. The company alleged it was forced to discount its 737 narrow-bodies to compete with Bombardier, which it said used government subsidies to dump the CSeries during the 2016 sale of 75 jets at “absurdly low” prices to Delta Air Lines.

Bombardier called the trade case self-serving after Boeing revealed on December 21 that it was discussing a “potential combination” with Embraer. Boeing denied the trade case was motivated by those talks.

Boeing to look at options

The dispute may not be over. “This can still be appealed by Boeing,” Andrew Leslie, parliamentary secretary to Canadian Foreign Minister Chrystia

Freeland, told reporters in Montreal.

Boeing said it would not consider such options before seeing the ITC’s reasoning in February.

But Boeing said it was disappointed the commission did not recognize “the harm that Boeing has suffered from the billions of dollars in illegal government subsidies that the Department of Commerce found Bombardier received and used to dump aircraft in the U.S. small single-aisle airplane market.”

Bombardier, Delta and the U.S. consumer advocacy group Travelers United all called the ITC decision a victory for consumers and airlines.

The decision may end up helping Trump’s goal of boosting U.S. jobs as the CSeries jets for U.S. airlines will be built in the United States rather than Canada.

Through a venture with European planemaker Airbus SE, which has agreed to take a majority stake in the CSeries this year, Bombardier plans to assemble CSeries jets in Alabama to be sold to U.S. carriers starting in 2019.

Sweet surprise

Airbus Chief Executive Tom Enders promised to push ahead “full throttle” with the Alabama plans. “Nothing is sweeter than a surprise, a surprise victory,” he said.

The case had sparked trade tensions between the United States and its allies Canada and the United Kingdom. Ottawa last year scrapped plans to buy 18 Super Hornet fighter jets from Boeing.

The well-paid jobs associated with the CSeries are important both to Ottawa and the British government. Bombardier employs about 4,000 workers in Northern Ireland.

The British prime minister’s office said it welcomed the decision, “which is good news” for the British industry, while Canada’s innovation minister said the ITC came to the “right decision” on Bombardier.

Former ITC Chairman Dan Pearson praised the decision. “Not a single commissioner was willing to buy Boeing’s arguments,” he said. “I think ‘America First’ is a policy of the White House and the Commerce Department. But it’s not the policy of an independent agency [like the ITC].”